as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state government; appropriating money for 1.3 economic development and certain agencies of state 1.4 government; establishing and modifying programs; 1.5 regulating activities and practices; modifying fees; 1.6 eliminating certain boards; transferring regulatory 1.7 authority over health maintenance organizations and 1.8 similar entities to the commissioner of commerce; 1.9 making conforming changes; requiring reports; amending 1.10 Minnesota Statutes 1998, sections 45.0295; 53A.03; 1.11 53A.05, subdivision 1; 60A.14, subdivision 1; 60A.23, 1.12 subdivision 8; 60A.71, subdivision 7; 60B.02; 60B.03, 1.13 subdivisions 2 and 4; 60B.15; 60B.20; 60G.01, 1.14 subdivisions 2 and 4; 60K.06, subdivision 2; 62A.61; 1.15 62D.01, subdivision 2; 62D.02, subdivision 3, and by 1.16 adding a subdivision; 62D.03, subdivisions 1, 3, and 1.17 4; 62D.04, subdivisions 1, 2, 4, and by adding a 1.18 subdivision; 62D.05, subdivision 6; 62D.06, 1.19 subdivision 2; 62D.07, subdivisions 2, 3, and 10; 1.20 62D.08, subdivisions 1, 2, 3, 4, and 5; 62D.09, 1.21 subdivisions 1 and 8; 62D.10, subdivision 4; 62D.11, 1.22 subdivisions 1b, 2, 3, and by adding a subdivision; 1.23 62D.12, subdivisions 1, 2, and 9; 62D.121, 1.24 subdivisions 3a and 7; 62D.14, subdivisions 1, 3, 4, 1.25 5, and 6; 62D.15, subdivisions 1 and 4; 62D.16, 1.26 subdivisions 1 and 2; 62D.17, subdivisions 1, 3, 4, 1.27 and 5; 62D.18, subdivisions 1 and 7; 62D.19; 62D.20, 1.28 subdivision 1; 62D.21; 62D.211; 62D.22, subdivisions 4 1.29 and 10; 62D.24; 62D.30, subdivisions 1 and 3; 62L.02, 1.30 subdivision 8; 62L.05, subdivision 12; 62L.08, 1.31 subdivisions 10 and 11; 62M.11; 62M.16; 62N.02, 1.32 subdivision 4; 62N.26; 62N.31, subdivision 1; 62Q.01, 1.33 subdivision 2; 62Q.07; 62Q.075, subdivision 4; 1.34 62Q.105, subdivisions 6 and 7; 62Q.11; 62Q.22, 1.35 subdivisions 2, 6, and 7; 62Q.32; 62Q.51, subdivision 1.36 3; 62Q.525, subdivision 3; 62R.04, subdivision 5; 1.37 62R.25; 62T.01, subdivision 4; 65B.48, subdivision 3; 1.38 70A.14, subdivision 4; 72A.139, subdivision 2; 72B.04, 1.39 subdivision 10; 79.255, subdivision 10; 80A.28, 1.40 subdivision 1; 82A.08, subdivision 2; 82A.16, 1.41 subdivisions 2 and 6; 116J.415, subdivision 5; 1.42 116J.421, subdivision 3, and by adding subdivisions; 1.43 116J.63, subdivision 4; 116J.8745, subdivisions 1 and 1.44 2; 116L.03, subdivision 5; 116L.04, subdivision 1a; 1.45 116L.06, subdivision 4; 175.17; 176.181, subdivision 1.46 2a; 237.295, subdivision 1; 268.022, subdivisions 1 2.1 and 2; 268.98, subdivision 3; 298.22, subdivision 2; 2.2 326.244, subdivision 2, and by adding a subdivision; 2.3 326.86, subdivision 1; 446A.072, subdivision 4; 2.4 462A.20, subdivision 2, and by adding a subdivision; 2.5 462A.204, by adding a subdivision; 462A.209; and 2.6 462A.21, by adding a subdivision; proposing coding for 2.7 new law in Minnesota Statutes, chapters 116J; and 178; 2.8 repealing Minnesota Statutes 1998, sections 44A.001; 2.9 44A.01; 44A.02; 44A.023; 44A.025; 44A.031; 44A.0311; 2.10 44A.06; 44A.08; 44A.11; 62D.18; 62L.11, subdivision 2; 2.11 62Q.45, subdivision 1; 138A.01; 138A.02; 138A.03; 2.12 138A.04; 138A.05; 138A.06; 341.01; 341.02; 341.04; 2.13 341.045; 341.05; 341.06; 341.07; 341.08; 341.09; 2.14 341.10; 341.11; 341.115; 341.12; 341.13; 341.15; 2.15 462A.28; 469.305; 469.306; 469.307; 469.308; and 2.16 469.31; Laws 1998, chapter 404, section 13, 2.17 subdivision 5. 2.18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.19 ARTICLE 1 2.20 APPROPRIATIONS 2.21 Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 2.22 The sums shown in the columns marked "APPROPRIATIONS" are 2.23 appropriated from the general fund, or another named fund, to 2.24 the agencies and for the purposes specified in this act, to be 2.25 available for the fiscal years indicated for each purpose. The 2.26 figures "2000" and "2001," where used in this act, mean that the 2.27 appropriation or appropriations listed under them are available 2.28 for the year ending June 30, 2000, or June 30, 2001, 2.29 respectively. The term "first year" means the fiscal year 2.30 ending June 30, 2000, and "second year" means the fiscal year 2.31 ending June 30, 2001. 2.32 SUMMARY BY FUND 2.33 2000 2001 TOTAL 2.34 General $192,698,000 $188,779,000 $381,477,000 2.35 Minnesota Environmental 2.36 and Natural Resources 2.37 Trust Fund 213,000 212,000 425,000 2.38 Minnesota Future 2.39 Resources Fund 960,000 -0- 960,000 2.40 Petroleum Tank 2.41 Cleanup 1,015,000 1,045,000 2,060,000 2.42 Environmental Fund 700,000 700,000 1,400,000 2.43 TANF 6,000,000 4,000,000 10,000,000 2.44 Trunk Highway 745,000 766,000 1,511,000 2.45 Workers' 2.46 Compensation 22,217,000 22,439,000 44,656,000 3.1 Special Revenue 875,000 775,000 1,650,000 3.2 TOTAL $225,423,000 $218,716,000 $444,139,000 3.3 APPROPRIATIONS 3.4 Available for the Year 3.5 Ending June 30 3.6 2000 2001 3.7 Sec. 2. TRADE AND ECONOMIC DEVELOPMENT 3.8 Subdivision 1. Total 3.9 Appropriation 42,362,000 38,791,000 3.10 Summary by Fund 3.11 General 39,192,000 35,825,000 3.12 Trunk Highway 745,000 766,000 3.13 Minnesota Future 3.14 Resources Fund 225,000 -0- 3.15 TANF 1,500,000 1,500,000 3.16 Environmental Fund 700,000 700,000 3.17 The amounts that may be spent from this 3.18 appropriation for each program are 3.19 specified in the following subdivisions. 3.20 Subd. 2. Business and Community 3.21 Development 23,871,000 20,922,000 3.22 Summary by Fund 3.23 General 21,446,000 18,722,000 3.24 TANF 1,500,000 1,500,000 3.25 Minnesota Future 3.26 Resources Fund 225,000 -0- 3.27 Environmental Fund 700,000 700,000 3.28 $4,017,000 the first year and 3.29 $4,017,000 the second year are for 3.30 Minnesota investment fund grants. 3.31 $400,000 the first year and $400,000 3.32 the second year are for grants to 3.33 Advantage Minnesota, Inc. This is a 3.34 one-time appropriation and is not added 3.35 to the agency's base. The funds are 3.36 available only if matched on at least a 3.37 dollar-for-dollar basis from other 3.38 sources. The commissioner may release 3.39 the funds only upon: 3.40 (1) certification that matching funds, 3.41 in cash, from each participating 3.42 organization are available; and 3.43 (2) review and approval by the 3.44 commissioner of the proposed operations 3.45 plan of Advantage Minnesota, Inc. for 3.46 the biennium. 3.47 $6,418,000 the first year and 3.48 $6,418,000 the second year are for the 3.49 job skills partnership program. If the 4.1 appropriation for either year is 4.2 insufficient, the appropriation for the 4.3 other year is available. Of this 4.4 appropriation, $500,000 in each year is 4.5 a one-time appropriation. This 4.6 appropriation does not cancel. 4.7 $1,500,000 the first year and 4.8 $1,500,000 the second year are 4.9 appropriated from the state's federal 4.10 TANF block grant under Title I of 4.11 Public Law Number 104-193 to the 4.12 commissioner of human services, to be 4.13 transferred to the commissioner of 4.14 trade and economic development for the 4.15 pathways program under Minnesota 4.16 Statutes, section 116L.04, subdivision 4.17 1a. It is the intention of the 4.18 legislature that the general fund base 4.19 funding to the pathways program be 4.20 $1,500,000 per year in the 2002-2003 4.21 biennium. 4.22 $537,000 the first year and $537,000 4.23 the second year are from fees collected 4.24 under Minnesota Statutes, section 4.25 446A.04, subdivision 5, to administer 4.26 the programs of the public facilities 4.27 authority. 4.28 $2,000,000 the first year is for 4.29 wastewater infrastructure supplemental 4.30 assistance grants to municipalities 4.31 under Minnesota Statutes, section 4.32 446A.072. This is a one-time 4.33 appropriation and is not added to the 4.34 agency's base. 4.35 $200,000 the first year and $200,000 4.36 the second year is for community 4.37 resources program allocations to cities 4.38 under Minnesota Statutes, sections 4.39 466A.01 to 466A.08, provided that only 4.40 the cities of Minneapolis and St. Paul 4.41 will be eligible to receive allocations 4.42 from this appropriation. 4.43 $100,000 the first year and $100,000 4.44 the second year are for grants to the 4.45 board of the rural policy and 4.46 development center for operation of the 4.47 center. 4.48 $155,000 the first year and $155,000 4.49 the second year are for grants to the 4.50 metropolitan economic development 4.51 association. 4.52 $177,000 the first year and $178,000 4.53 the second year are for grants to Women 4.54 Venture. This is a one-time 4.55 appropriation and is not added to the 4.56 agency's base. 4.57 $350,000 the first year and $350,000 4.58 the second year are for grants to the 4.59 St. Paul rehabilitation center for its 4.60 current programs, including those 4.61 related to developing job-seeking 4.62 skills and workplace orientation, 4.63 intensive job development, functional 5.1 work English, and on-site job coaching. 5.2 $250,000 is for a grant to the city of 5.3 Windom to provide loans to assist an 5.4 expanding business. This is a one-time 5.5 appropriation and is not added to the 5.6 agency's base. 5.7 $350,000 is for the biennium ending 5.8 June 30, 2001, for a grant to the Camp 5.9 Heartland center. The grant may be 5.10 used for phase II capital expenditures 5.11 including, without limitation, a septic 5.12 system upgrade and bath/shower house 5.13 construction, construction of a family 5.14 lodge, renovation of a medical 5.15 facility, construction of staff housing 5.16 and offices, or expansion and upgrade 5.17 of the dining room and kitchen. This 5.18 is a one-time appropriation and is not 5.19 added to the agency's base. 5.20 $2,800,000 in each year for purposes of 5.21 the contamination cleanup and 5.22 development grant program under 5.23 Minnesota Statutes, sections 116J.551 5.24 to 116J.558. 5.25 $15,000 is for a grant to the city of 5.26 Lake Benton for planning costs 5.27 associated with a new visitor center 5.28 and railroad depot building. This is a 5.29 one-time appropriation and is not added 5.30 to the agency's base. 5.31 $100,000 the first year and $100,000 5.32 the second year are for microenterprise 5.33 technical assistance under Minnesota 5.34 Statutes, section 116J.8745. 5.35 $225,000 the first year is from the 5.36 Minnesota Future Resources Fund and is 5.37 for a grant to the city of Virginia for 5.38 its storm sewer project. 5.39 $50,000 in 2000 is for a grant to the 5.40 Chatfield brass band music lending 5.41 library. The money must be used for 5.42 computer hardware and software to 5.43 catalog the music collection and create 5.44 a Web site. This is a one-time 5.45 appropriation and must not be added to 5.46 the agency's budget base. 5.47 $50,000 in fiscal year 2000 is for a 5.48 one-time grant to the Duluth Economic 5.49 Development Authority for the purchase 5.50 and installation of railroad ties to 5.51 improve the Lake Superior Mississippi 5.52 Railroad scenic railway along the St. 5.53 Louis Bay in Duluth. 5.54 $100,000 is appropriated for a grant to 5.55 the city of Lanesboro for 5.56 predevelopment costs for the Root River 5.57 Regional Arts Center. This is a 5.58 one-time appropriation and is not added 5.59 to the agency's budget base. 5.60 $25,000 the first year and $25,000 the 5.61 second year is for grants to county and 6.1 district agricultural societies and 6.2 associations that are eligible to 6.3 receive aid under Minnesota Statutes, 6.4 section 38.02. The commissioner shall 6.5 administer this appropriation pursuant 6.6 to a competitive grant process. 6.7 Subd. 3. Minnesota Trade Office 6.8 2,275,000 2,318,000 6.9 Subd. 4. Tourism 6.10 10,904,000 10,909,000 6.11 Summary by Fund 6.12 General 10,159,000 10,143,000 6.13 Trunk Highway 745,000 766,000 6.14 To develop maximum private sector 6.15 involvement in tourism, $3,500,000 the 6.16 first year and $3,500,000 the second 6.17 year of the amounts appropriated for 6.18 marketing activities are contingent on 6.19 receipt of an equal contribution from 6.20 nonstate sources that have been 6.21 certified by the commissioner. Up to 6.22 one-half of the match may be given in 6.23 in-kind contributions. 6.24 In order to maximize marketing grant 6.25 benefits, the commissioner must give 6.26 priority for joint venture marketing 6.27 grants to organizations with year-round 6.28 sustained tourism activities. For 6.29 programs and projects submitted, the 6.30 commissioner must give priority to 6.31 those that encompass two or more areas 6.32 or that attract nonresident travelers 6.33 to the state. 6.34 If an appropriation for either year for 6.35 grants is not sufficient, the 6.36 appropriation for the other year is 6.37 available for it. 6.38 The commissioner may use grant dollars 6.39 or the value of in-kind services to 6.40 provide the state contribution for the 6.41 partnership program. 6.42 Any unexpended money from general fund 6.43 appropriations made under this 6.44 subdivision does not cancel but must be 6.45 placed in a special advertising account 6.46 for use by the office of tourism to 6.47 purchase additional media. 6.48 $829,000 the first year and $829,000 6.49 the second year are for the Minnesota 6.50 film board. This appropriation is 6.51 available only upon receipt by the 6.52 board of $1 in matching contributions 6.53 of money or in-kind from nonstate 6.54 sources for every $3 provided by this 6.55 appropriation. Of this amount, 6.56 $500,000 the first year and $500,000 6.57 the second year are for grants to the 6.58 Minnesota film board for a film 7.1 production jobs fund to stimulate 7.2 feature film production in Minnesota. 7.3 This appropriation is to reimburse film 7.4 producers for two to five percent of 7.5 documented wages which they paid to 7.6 Minnesotans for film production after 7.7 January 1, 1999. 7.8 $100,000 the first year is for a grant 7.9 to promote tourism in the Mille Lacs 7.10 area. This is a one-time appropriation 7.11 and is not added to the agency's base. 7.12 Subd. 5. Administration 7.13 3,897,000 3,192,000 7.14 $750,000 the first year is appropriated 7.15 for enhancements to the journey travel 7.16 destination system. The funds are 7.17 available only if matched in cash on at 7.18 least a dollar-for-dollar basis from 7.19 other sources. This is a one-time 7.20 appropriation and is available until 7.21 spent. 7.22 Subd. 6. Information and Analysis 7.23 1,415,000 1,450,000 7.24 Sec. 3. MINNESOTA TECHNOLOGY, INC. 5,830,000 5,630,000 7.25 $5,055,000 the first year and 7.26 $5,055,000 the second year are for 7.27 transfer from the general fund to the 7.28 Minnesota Technology, Inc. fund. It is 7.29 the intention of the legislature that 7.30 base funding of $6,105,000 per year is 7.31 intended to be restored in the 7.32 2002-2003 biennium. 7.33 $75,000 the first year and $75,000 the 7.34 second year are for grants to the 7.35 Minnesota inventors congress. 7.36 $100,000 the first year and $100,000 7.37 the second year are for grants to the 7.38 Minnesota cold weather research 7.39 center. By January 15, 2001, the 7.40 center will report to the legislature 7.41 on (1) the sources and amounts of its 7.42 nonstate matching funds, and (2) the 7.43 effectiveness of its program in 7.44 achieving quantifiable economic 7.45 development benefits to the state. 7.46 $600,000 the first year and $400,000 7.47 the second year are for grants to 7.48 Minnesota Project Innovation. The 7.49 legislature intends to reduce the base 7.50 appropriation for this program to 7.51 $200,000 in 2002 and to eliminate the 7.52 base appropriation in 2003. Any 7.53 amounts in excess of those stated 7.54 included in a budget should include a 7.55 change item. 7.56 Sec. 4. ECONOMIC SECURITY 7.57 Subdivision 1. Total 7.58 Appropriation 45,140,000 38,371,000 8.1 Summary by Fund 8.2 General 43,865,000 37,596,000 8.3 Special Revenue 775,000 775,000 8.4 TANF Block Grant 500,000 -0- 8.5 Subd. 2. Rehabilitation Services 22,502,000 22,013,000 8.6 Summary by Fund 8.7 General 22,002,000 22,013,000 8.8 TANF 500,000 -0- 8.9 $1,800,000 the first year and 8.10 $1,800,000 the second year are for 8.11 centers for independent living. The 8.12 commissioner is not required to 8.13 allocate this appropriation equally 8.14 among all centers. 8.15 $500,000 the first year is to provide 8.16 welfare-to-work extended employment 8.17 services to welfare recipients with 8.18 severe impairment to employment, as 8.19 defined in Minnesota Statutes, section 8.20 268A.15, subdivision 1a. Of this 8.21 appropriation, up to five percent is 8.22 for administrative costs. This is a 8.23 one-time appropriation and may not be 8.24 added to the budget base in the 8.25 biennium ending June 30, 2003. This 8.26 appropriation is from the state's 8.27 federal TANF block grant under Public 8.28 Law Number 104-193 to the commissioner 8.29 of human services, to be transferred to 8.30 the commissioner of economic security. 8.31 This appropriation is available until 8.32 June 30, 2001. 8.33 $825,000 the first year and $827,000 8.34 the second year are for employment 8.35 support services for persons with 8.36 mental illness authorized under 8.37 Minnesota Statutes, section 268A.13. 8.38 $250,000 the first year and $250,000 8.39 the second year is for a grant to the 8.40 Minnesota employment center for deaf 8.41 and hard-of-hearing people. 8.42 In fiscal year 2000, $975,000 is to 8.43 increase the reimbursement rates for 8.44 extended employment services. 8.45 Effective for services rendered on or 8.46 after July 1, 1999, the commissioner 8.47 shall increase by ten percent all 8.48 reimbursement rates under Minnesota 8.49 Rules, part 3300.2035, subpart 6, item 8.50 A, for extended employment services for 8.51 persons with severe disabilities or 8.52 related conditions under Minnesota 8.53 Statutes, section 268A.15. This amount 8.54 is added to the agency's base. 8.55 $100,000 the first year and $100,000 8.56 the second year are for a grant to 8.57 Advocating Change Together, Inc., 9.1 (ACT). The grant must be used for the 9.2 training and empowerment of individuals 9.3 with developmental and other mental 9.4 health disabilities, the maintenance of 9.5 related data, or technical assistance 9.6 for work advancement or additional 9.7 workforce training. This is a one-time 9.8 appropriation and is available until 9.9 June 30, 2001. 9.10 Subd. 3. State Services for the Blind 9.11 6,114,000 4,817,000 9.12 $1,400,000 the first year is 9.13 appropriated to convert the 9.14 communication center to digital 9.15 technology and move the radio talking 9.16 book program to a different frequency. 9.17 The funds are available only if matched 9.18 in cash on at least a dollar-for-dollar 9.19 basis from private sources. This is a 9.20 one-time appropriation and is available 9.21 until June 30, 2001. 9.22 The appropriation in the second year is 9.23 not available until the commissioners 9.24 of finance and economic security have 9.25 reviewed the operation of the state 9.26 services for the blind, determined why 9.27 a budget deficiency occurred in fiscal 9.28 year 1999 and what steps should be 9.29 taken to prevent a future deficiency 9.30 and reported their findings to the 9.31 legislature. 9.32 Subd. 4. Workforce Preparation 9.33 16,474,000 11,491,000 9.34 Summary by Fund 9.35 General 15,699,000 10,716,000 9.36 Special Revenue 775,000 775,000 9.37 $775,000 the first year and $775,000 9.38 the second year are for job training 9.39 programs under Minnesota Statutes, 9.40 sections 268.60 to 268.64. 9.41 Notwithstanding Minnesota Statutes, 9.42 section 268.022, this appropriation is 9.43 from the workforce investment fund. No 9.44 transfers from the workforce investment 9.45 fund shall be made for this purpose 9.46 after June 30, 2003. In preparing the 9.47 budget for fiscal years beginning after 9.48 June 30, 2003, the commissioner of 9.49 finance must reflect in the budget 9.50 documents that no transfers will be 9.51 made. 9.52 $1,822,000 the first year and 9.53 $1,827,000 the second year are for 9.54 displaced homemaker programs under 9.55 Minnesota Statutes, section 268.96. 9.56 The commissioner shall prepare and 9.57 report to the legislature a plan for a 9.58 sliding scale fee structure for this 9.59 program. 10.1 $5,000,000 the first year is 10.2 appropriated to match available United 10.3 States Department of Labor 10.4 Welfare-to-Work funds. 10.5 $1,425,000 the first year and 10.6 $1,425,000 the second year are for 10.7 youth intervention programs under 10.8 Minnesota Statutes, section 268.30. 10.9 Funding from this appropriation may be 10.10 used to expand existing programs to 10.11 serve unmet needs and to create new 10.12 programs in underserved areas. 10.13 $851,000 the first year and $852,000 10.14 the second year are for the Youthbuild 10.15 program under Minnesota Statutes, 10.16 sections 268.361 to 268.366. A 10.17 Minnesota Youthbuild program funded 10.18 under this section as authorized in 10.19 Minnesota Statutes, sections 268.361 to 10.20 268.367, qualifies as an approved 10.21 training program under Minnesota Rules, 10.22 part 5200.0930, subpart 1. 10.23 $116,000 the first year and $116,000 10.24 the second year are appropriated for 10.25 youth violence prevention programs to 10.26 match the federal juvenile 10.27 accountability incentive block grant. 10.28 This is a one-time appropriation. 10.29 Notwithstanding Minnesota Statutes, 10.30 section 268.022, subdivision 2, the 10.31 commissioner of finance shall transfer 10.32 to the general fund from the dedicated 10.33 fund $19,500,000 the first year and 10.34 $9,500,000 the second year of the money 10.35 collected through the special 10.36 assessment established in Minnesota 10.37 Statutes, section 268.022, subdivision 10.38 1. No transfers from the dedicated 10.39 fund to the general fund are to be made 10.40 after June 30, 2003. If the 10.41 commissioner of finance prepares a 10.42 budget for any period beginning after 10.43 June 30, 2003, that calls for such a 10.44 transfer, the budget documents must 10.45 reflect a change item. 10.46 Subd. 5. Workforce Exchange 10.47 50,000 50,000 10.48 The commissioner of economic security 10.49 is directed to prepare a plan to reduce 10.50 the number of line managers and reduce 10.51 the costs of operation in workforce 10.52 centers. The legislature finds it 10.53 unacceptable to have up to five 10.54 managers in individual workforce 10.55 centers. 10.56 $50,000 the first year and $50,000 the 10.57 second year is appropriated for asset 10.58 preservation and facility repair. 10.59 $348,625 the first year is for systems 10.60 development for electronic commerce to 10.61 improve communication with customers of 10.62 the job service and reemployment 11.1 insurance program. In accordance with 11.2 Minnesota Statutes, section 268.194, 11.3 subdivision 5, this money is a one-time 11.4 appropriation from federal money made 11.5 available specifically for that purpose 11.6 under United States Code, title 42, 11.7 section 1103, also known as the Reed 11.8 Act. This appropriation is available 11.9 for two years after the date of 11.10 enactment. 11.11 $2,000,000 the first year and 11.12 $2,000,000 the second year are for 11.13 systems development for electronic 11.14 commerce in the reemployment insurance 11.15 program to improve communication with 11.16 employers. In accordance with 11.17 Minnesota Statutes, section 268.194, 11.18 subdivision 5, this money is a one-time 11.19 appropriation from federal money to be 11.20 made available specifically for that 11.21 purpose under United States Code, title 11.22 42, section 1103, also known as the 11.23 Reed Act, and section 5403 of the 11.24 Federal Balanced Budget Act of 1997. 11.25 Each annual appropriation is available 11.26 for two years after the date of 11.27 enactment. 11.28 Sec. 5. HOUSING FINANCE AGENCY 49,420,000 46,820,000 11.29 Summary by Fund 11.30 General 45,420,000 44,320,000 11.31 TANF 4,000,000 2,500,000 11.32 Subdivision 1. Total Appropriation 11.33 The amounts that may be spent from this 11.34 appropriation for certain programs are 11.35 specified in the following subdivisions. 11.36 This appropriation is for transfer to 11.37 the housing development fund for the 11.38 programs specified. Except as 11.39 otherwise indicated, this transfer is 11.40 part of the agency's permanent budget 11.41 base. 11.42 Subd. 2. Rental Assistance for Mentally Ill 11.43 $1,700,000 the first year and 11.44 $1,700,000 the second year are for a 11.45 rental housing assistance program for 11.46 persons with a mental illness or 11.47 families with an adult member with a 11.48 mental illness under Minnesota 11.49 Statutes, section 462A.2097. 11.50 Subd. 3. Family Homeless Prevention 11.51 $3,250,000 the first year and 11.52 $3,250,000 the second year is for the 11.53 family homeless prevention and 11.54 assistance program under Minnesota 11.55 Statutes, section 462A.204, and is 11.56 available until June 30, 2001. Of this 11.57 amount, $1,875,000 the first year and 11.58 $375,000 the second year is from the 11.59 state's federal TANF block grant under 12.1 Title I of Public Law Number 104-193 to 12.2 the commissioner of human services, to 12.3 be transferred to the housing 12.4 development fund for this program. It 12.5 is the intention of the legislature 12.6 that the general fund base funding to 12.7 this program be $6,500,000 for the 12.8 2002-2003 biennium. 12.9 Subd. 4. Foreclosure Prevention Program 12.10 $583,000 the first year and $583,000 12.11 the second year are for the foreclosure 12.12 prevention and assistance program under 12.13 Minnesota Statutes, section 462A.207. 12.14 Subd. 5. Rental Assistance for 12.15 Family Stabilization 12.16 $2,125,000 the first year and 12.17 $2,125,000 the second year are 12.18 appropriated from the state's federal 12.19 TANF block grant under Title I of 12.20 Public Law Number 104-193 to the 12.21 commissioner of human services, to be 12.22 transferred to the housing development 12.23 fund for the rent assistance for family 12.24 stabilization program under Minnesota 12.25 Statutes, section 462A.205. It is the 12.26 intention of the legislature that the 12.27 general fund base funding for this 12.28 program be $2,000,000 per year for the 12.29 2002-2003 biennium. 12.30 Subd. 6. Housing Trust Fund 12.31 $2,348,000 the first year and 12.32 $2,348,000 the second year are for the 12.33 housing trust fund to be deposited in 12.34 the housing trust fund account created 12.35 under Minnesota Statutes, section 12.36 462A.201, and used for the purposes 12.37 provided in that section. Of this 12.38 amount, $550,000 each year must be used 12.39 for transitional housing. 12.40 Subd. 7. Affordable Rental Investment Fund 12.41 $21,493,000 the first year and 12.42 $21,493,000 the second year are for the 12.43 affordable rental investment fund 12.44 program under Minnesota Statutes, 12.45 section 462A.21, subdivision 8b. Of 12.46 this amount, $15,000,000 the first year 12.47 and $15,000,000 the second year are to 12.48 finance the acquisition, 12.49 rehabilitation, and debt restructuring 12.50 of federally assisted rental property 12.51 and for making equity take-out loans 12.52 under Minnesota Statutes, section 12.53 462A.05, subdivision 39. The owner of 12.54 the federally assisted rental property 12.55 must agree to participate in the 12.56 applicable federally assisted housing 12.57 program and to extend any existing 12.58 low-income affordability restrictions 12.59 on the housing for the maximum term 12.60 permitted. The owner must also enter 12.61 into an agreement that gives local 12.62 units of government, housing and 12.63 redevelopment authorities, and 13.1 nonprofit housing organizations the 13.2 right of first refusal if the rental 13.3 property is offered for sale. Priority 13.4 must be given among comparable 13.5 properties to properties with the 13.6 longest remaining term under an 13.7 agreement for federal rental 13.8 assistance. Priority must also be 13.9 given among comparable rental housing 13.10 developments to developments that are 13.11 or will be owned by local government 13.12 units, a housing and redevelopment 13.13 authority, or a nonprofit housing 13.14 organization. Of this appropriation, 13.15 $5,000,000 in each year is a one-time 13.16 appropriation and is not added to the 13.17 agency's permanent base. 13.18 To the extent practicable, this 13.19 appropriation shall be used so that an 13.20 approximately equal number of housing 13.21 units are financed in the metropolitan 13.22 area, as defined in Minnesota Statutes, 13.23 section 473.121, subdivision 2, and in 13.24 the nonmetropolitan area. 13.25 Subd. 8. Urban Indian Housing Program 13.26 No appropriation is made for the urban 13.27 Indian housing program under Minnesota 13.28 Statutes, section 462A.07, subdivision 13.29 15. It is the intention of the 13.30 legislature that the agency will use 13.31 accumulated reserves to fund this 13.32 program in the 2000-2001 biennium. The 13.33 base of $187,000 per year is intended 13.34 to be restored in fiscal year 2002 and 13.35 beyond. 13.36 Subd. 9. Tribal Indian Housing Program 13.37 $1,683,000 the first year and 13.38 $1,683,000 the second year are for the 13.39 tribal Indian housing program under 13.40 Minnesota Statutes, section 462A.07, 13.41 subdivision 14. 13.42 Subd. 10. Rural and Urban Homesteading 13.43 $186,000 the first year and $186,000 13.44 the second year are for the Minnesota 13.45 rural and urban homesteading program 13.46 under Minnesota Statutes, section 13.47 462A.057. 13.48 Subd. 11. Capacity Building Grants 13.49 $240,000 the first year and $240,000 13.50 the second year are for nonprofit 13.51 capacity building grants under 13.52 Minnesota Statutes, section 462A.21, 13.53 subdivision 3b. 13.54 Subd. 12. Community Rehabilitation Program 13.55 $6,900,000 the first year and 13.56 $6,900,000 the second year are for the 13.57 community rehabilitation program under 13.58 Minnesota Statutes, section 462A.206. 13.59 Of this appropriation, $1,000,000 in 13.60 each year is a one-time appropriation 14.1 and is not added to the agency's base. 14.2 The housing finance agency is 14.3 encouraged to give consideration to 14.4 community rehabilitation program 14.5 applications for grants to purchase and 14.6 rehabilitate housing for families which 14.7 is also used for the purpose of 14.8 providing child care services targeted 14.9 to underserved immigrant and refugee 14.10 families. Grantees receiving money 14.11 under this provision must coordinate 14.12 housing assistance with related 14.13 services funded by the commissioner of 14.14 children, families, and learning. The 14.15 housing finance agency shall report to 14.16 the legislature on the number of 14.17 housing units purchased and 14.18 rehabilitated for this purpose. 14.19 $275,000 the first year and $275,000 14.20 the second year are for full-cycle home 14.21 ownership and purchase-rehabilitation 14.22 lending initiatives under Minnesota 14.23 Statutes, section 462A.21, subdivision 14.24 25. 14.25 Subd. 13. Housing Rehabilitation 14.26 and Accessibility Program 14.27 $4,287,000 the first year and 14.28 $4,287,000 the second year are for the 14.29 housing rehabilitation and 14.30 accessibility program under Minnesota 14.31 Statutes, section 462A.05, subdivisions 14.32 14a and 15a. 14.33 Subd. 14. Home Ownership Assistance Fund 14.34 $900,000 the first year and $900,000 14.35 the second year are for the home 14.36 ownership assistance fund under 14.37 Minnesota Statutes, section 462A.21, 14.38 subdivision 8. 14.39 Subd. 15. School Stability Demonstration 14.40 $1,000,000 the first year is to 14.41 administer the program established in 14.42 Minnesota Statutes, section 462A.204, 14.43 subdivision 8, if enacted. This is a 14.44 one-time appropriation. 14.45 Subd. 16. Innovative and Inclusionary 14.46 Housing Demonstration Projects 14.47 (a) $1,600,000 is appropriated from the 14.48 general fund to the commissioner of the 14.49 Minnesota housing finance agency for 14.50 transfer to the housing development 14.51 fund for the community rehabilitation 14.52 program under Minnesota Statutes, 14.53 section 462A.206. This appropriation 14.54 is for at least three, and not more 14.55 than six, innovative affordable housing 14.56 demonstration projects. 14.57 (b) These pilot projects are to create 14.58 owner-occupied homes which use 14.59 innovative building techniques or 14.60 materials to lower construction costs 15.1 while maintaining high quality 15.2 construction and livability. At least 15.3 one pilot project must be in a city of 15.4 the first class and at least one must 15.5 be in a suburb located in the 15.6 seven-county metropolitan area. 15.7 Applications for grants from this 15.8 appropriation must identify the 15.9 targeted population for whom housing 15.10 will be provided with the grant. 15.11 (c) The commissioner will develop 15.12 procedures to implement this 15.13 demonstration project and establish 15.14 criteria upon which to judge grant 15.15 applications. These criteria must 15.16 include: (1) local effort by the 15.17 community; (2) the community's 15.18 willingness to waive restrictions which 15.19 would otherwise increase costs of 15.20 construction; (3) consistency with 15.21 regionally developed investment 15.22 guidelines; (4) the extent to which the 15.23 project will promote inclusionary 15.24 housing; and (5) the extent to which a 15.25 grant would leverage funding from 15.26 nonstate sources. 15.27 (d) For purposes of paragraph (c), the 15.28 term "inclusionary housing" means a new 15.29 construction development including 15.30 housing with a variety of prices and 15.31 designs which serve families with a 15.32 range of incomes and housing needs. 15.33 This appropriation must be used 15.34 principally for projects which close 15.35 the gap between the market price of 15.36 housing in an area and the price 15.37 affordable to the targeted income level 15.38 or the cost of producing housing and 15.39 the market price of the housing. This 15.40 is a one-time appropriation and is not 15.41 added to the agency's permanent base. 15.42 Subd. 17. Homeownership Counseling 15.43 $50,000 in the first year and $50,000 15.44 in the second year is appropriated from 15.45 the general fund to the housing 15.46 development fund for the fiscal 15.47 biennium ending June 30, 2001, for 15.48 purposes of the community 15.49 rehabilitation program under Minnesota 15.50 Statutes, section 462A.206. This 15.51 appropriation must be used to make a 15.52 grant to a statewide organization that 15.53 advocates on behalf of persons with 15.54 mental retardation or related 15.55 conditions. The grant must be used to 15.56 provide entry cost assistance, 15.57 prepurchase and postpurchase counseling 15.58 to persons with various disabilities 15.59 who are participating in the Fannie Mae 15.60 Homechoice demonstration project and 15.61 other projects designed to encourage 15.62 home ownership among persons with 15.63 disabilities. 15.64 Subd. 18. Cancellations 16.1 The unobligated and unencumbered 16.2 balance in the contract for deed 16.3 guarantee account under Minnesota 16.4 Statutes, section 462A.2091 is 16.5 transferred to the full cycle 16.6 homeownership services program under 16.7 Minnesota Statutes, section 462A.209. 16.8 The unobligated and unencumbered 16.9 balance appropriated to the advisory 16.10 task force on lead hazard reduction 16.11 established under Laws 1997, chapter 16.12 200, article 4, section 1, is 16.13 transferred to the housing 16.14 rehabilitation and accessibility 16.15 program under Minnesota Statutes, 16.16 section 462A.05, subdivisions 14a and 16.17 15a, for use in the emergency loan 16.18 fund. Priority for the use of these 16.19 funds shall be given to emergency loans 16.20 and grants for lead hazard reduction. 16.21 The unobligated and unencumbered 16.22 balance appropriated to the community 16.23 rehabilitation fund account under Laws 16.24 1997, chapter 200, article 1, section 16.25 6, for grants to acquire, demolish, and 16.26 remove substandard multiple-unit 16.27 residential property or acquire, 16.28 rehabilitate, and reconfigure 16.29 multiple-unit residential rental 16.30 property is transferred to the 16.31 affordable rental investment fund 16.32 program under Minnesota Statutes, 16.33 section 462A.21, subdivision 8b. 16.34 Sec. 6. COMMERCE 16.35 Subdivision 1. Total 16.36 Appropriation 18,927,000 19,115,000 16.37 Summary by Fund 16.38 General 17,245,000 17,486,000 16.39 Petro Cleanup 1,015,000 1,045,000 16.40 Workers' 16.41 Compensation 567,000 584,000 16.42 Special Revenue 100,000 -0- 16.43 The amounts that may be spent from this 16.44 appropriation for each program are 16.45 specified in the following subdivisions. 16.46 Subd. 2. Financial Examinations 16.47 3,963,000 4,052,000 16.48 Subd. 3. Registration and Insurance 16.49 4,916,000 6,589,000 16.50 Summary by Fund 16.51 General 4,249,000 6,005,000 16.52 Workers' 16.53 Compensation 567,000 584,000 17.1 Special Revenue 100,000 -0- 17.2 The commissioner shall evaluate the 17.3 feasibility of a state crop revenue 17.4 insurance program to complement similar 17.5 federal programs. 17.6 $100,000 of this appropriation is from 17.7 the special revenue fund and is not 17.8 available unless H. F. No. 743 is 17.9 enacted. 17.10 $784,000 the second year is for 17.11 transfer to the commissioner of health 17.12 to assume responsibilities for HMO 17.13 regulation. 17.14 Subd. 4. Enforcement and Licensing 17.15 4,355,000 4,296,000 17.16 Subd. 5. Petroleum Tank Release 17.17 Cleanup Board 17.18 1,015,000 1,045,000 17.19 This appropriation is from the 17.20 petroleum tank release cleanup fund. 17.21 Subd. 6. Administrative Services 17.22 4,678,000 3,133,000 17.23 $1,400,000 the first year is a one-time 17.24 appropriation to redesign and 17.25 re-engineer the department's data base. 17.26 $90,000 the first year is a one-time 17.27 appropriation for expanding website 17.28 capabilities. 17.29 Sec. 7. BOARD OF ACCOUNTANCY 607,000 624,000 17.30 Sec. 8. BOARD OF ARCHITECTURE, 17.31 ENGINEERING, LAND SURVEYING, 17.32 LANDSCAPE ARCHITECTURE, AND 17.33 INTERIOR DESIGN 770,000 794,000 17.34 Sec. 9. BOARD OF BARBER 17.35 EXAMINERS 144,000 149,000 17.36 Sec. 10. BOARD OF BOXING 84,000 -0- 17.37 Sec. 11. LABOR AND INDUSTRY 17.38 Subdivision 1. Total 17.39 Appropriation 23,843,000 24,183,000 17.40 Summary by Fund 17.41 General 3,736,000 3,913,000 17.42 Workers' 17.43 Compensation 20,107,000 20,270,000 17.44 The amounts that may be spent from this 17.45 appropriation for each program are 17.46 specified in the following subdivisions. 17.47 Subd. 2. Workers' Compensation 18.1 10,586,000 10,833,000 18.2 This appropriation is from the workers' 18.3 compensation fund. 18.4 Subd. 3. Workplace Services 18.5 6,711,000 6,980,000 18.6 Summary by Fund 18.7 General 2,672,000 2,844,000 18.8 Workers' 18.9 Compensation 4,039,000 4,136,000 18.10 Subd. 4. General Support 18.11 6,546,000 6,370,000 18.12 Summary by Fund 18.13 General 1,064,000 1,069,000 18.14 Workers' 18.15 Compensation 5,482,000 5,301,000 18.16 Sec. 12. BUREAU OF MEDIATION 18.17 SERVICES 2,130,000 2,180,000 18.18 Sec. 13. WORKERS' COMPENSATION 18.19 COURT OF APPEALS 1,543,000 1,585,000 18.20 This appropriation is from the workers' 18.21 compensation fund. 18.22 Sec. 14. PUBLIC UTILITIES 18.23 COMMISSION 3,781,000 3,880,000 18.24 Sec. 15. DEPARTMENT OF PUBLIC SERVICE 18.25 Subdivision 1. Total 18.26 Appropriation 9,595,000 9,805,000 18.27 The amounts that may be spent from this 18.28 appropriation for each program are 18.29 specified in the following subdivisions. 18.30 Subd. 2. Telecommunications 18.31 962,000 980,000 18.32 Subd. 3. Weights and Measures 18.33 3,138,000 3,207,000 18.34 Subd. 4. Information and Operations 18.35 Management 18.36 1,575,000 1,618,000 18.37 Subd. 5. Energy 18.38 3,920,000 4,000,000 18.39 $588,000 each year is for transfer to 18.40 the energy and conservation account 18.41 established in Minnesota Statutes, 18.42 section 216B.241, subdivision 2a, for 18.43 programs administered by the 18.44 commissioner of children, families, and 19.1 learning to improve the energy 19.2 efficiency of residential oil-fired 19.3 heating plants in low-income households 19.4 and, when necessary, to provide 19.5 weatherization services to the homes. 19.6 Sec. 16. MINNESOTA HISTORICAL 19.7 SOCIETY 19.8 Subdivision 1. Total 19.9 Appropriation 25,462,000 24,956,000 19.10 Summary by Fund 19.11 General 24,514,000 24,744,000 19.12 Minnesota Environmental 19.13 and Natural Resources 19.14 Trust Fund 213,000 212,000 19.15 Minnesota Future 19.16 Resources Fund 735,000 -0- 19.17 The amounts that may be spent from this 19.18 appropriation for each program are 19.19 specified in the following subdivisions. 19.20 Subd. 2. Education and 19.21 Outreach 19.22 13,052,000 13,024,000 19.23 Summary by Fund 19.24 General 12,699,000 12,812,000 19.25 Minnesota Environmental 19.26 and Natural Resources 19.27 Trust Fund 213,000 213,000 19.28 Minnesota Future 19.29 Resources Fund 140,000 -0- 19.30 Subd. 3. Preservation and Access 19.31 9,438,000 9,479,000 19.32 Summary by Fund 19.33 General 9,318,000 9,479,000 19.34 Minnesota Future 19.35 Resources Fund 120,000 -0- 19.36 Subd. 4. Information Program 19.37 Delivery 19.38 2,141,000 2,155,000 19.39 Subd. 5. Fiscal Agent 19.40 831,000 298,000 19.41 Summary by Fund 19.42 General 346,000 298,000 19.43 Minnesota Future 19.44 Resources Fund 475,000 -0- 19.45 (a) Sibley House Association 20.1 88,000 88,000 20.2 This appropriation is available for 20.3 operation and maintenance of the Sibley 20.4 House and related buildings on the Old 20.5 Mendota state historic site operated by 20.6 the Sibley House Association. 20.7 (b) Minnesota International Center 20.8 50,000 50,000 20.9 (c) Minnesota Air National 20.10 Guard Museum 20.11 19,000 -0- 20.12 (d) Institute for Learning and 20.13 Teaching - Project 120 20.14 110,000 110,000 20.15 (e) Minnesota Military Museum 20.16 29,000 -0- 20.17 (f) Farmamerica 20.18 50,000 50,000 20.19 (g) Gibbs Farm Museum 20.20 150,000 -0- 20.21 This appropriation is from the 20.22 Minnesota Future Resources Fund. 20.23 (h) Minnesota Watershed Ecology Project 20.24 90,000 -0- 20.25 This appropriation is from the 20.26 Minnesota Future Resources Fund. 20.27 (i) Murphy's Landing Improvements 20.28 110,000 -0- 20.29 This appropriation is from the 20.30 Minnesota Future Resources Fund. 20.31 (j) Old Wadena Historic Site Development 20.32 25,000 -0- 20.33 This appropriation is from the 20.34 Minnesota Future Resources Fund. 20.35 (k) Pickwick Mill Machine Restoration 20.36 100,000 -0- 20.37 This appropriation is from the 20.38 Minnesota Future Resources Fund. 20.39 (l) Winona County Historical Society 20.40 10,000 -0- 20.41 This is a one-time appropriation and is 20.42 not added to the agency's base. 21.1 (m) Balances Forward 21.2 Any unencumbered balance remaining in 21.3 this subdivision the first year does 21.4 not cancel but is available for the 21.5 second year of the biennium. 21.6 Sec. 17. MINNESOTA MUNICIPAL 21.7 BOARD 162,000 -0- 21.8 Sec. 18. COUNCIL ON BLACK 21.9 MINNESOTANS 320,000 329,000 21.10 $25,000 each year is for expenses 21.11 associated with the Dr. Martin Luther 21.12 King Day activities. 21.13 Sec. 19. COUNCIL ON 21.14 CHICANO-LATINO AFFAIRS 314,000 324,000 21.15 Sec. 20. COUNCIL ON 21.16 ASIAN-PACIFIC MINNESOTANS 277,000 286,000 21.17 Sec. 21. INDIAN AFFAIRS 21.18 COUNCIL 551,000 567,000 21.19 Sec. 22. OFFICE OF STRATEGIC 21.20 AND LONG-RANGE PLANNING 161,000 327,000 21.21 To assume administrative 21.22 responsibilities resulting from the 21.23 sunset of the Municipal Board under 21.24 Laws 1997, chapter 202, article 5, 21.25 section 8. 21.26 ARTICLE 2 21.27 MISCELLANEOUS 21.28 Section 1. Minnesota Statutes 1998, section 45.0295, is 21.29 amended to read: 21.30 45.0295 [FEES.] 21.31 (a) The following fees shall be paid to the commissioner: 21.32(1) for a letter of certification of licensure, $20;21.33(2) for a license history, $20;21.34(3) for a duplicate license, $10;21.35(4) for a change of name or address, $10;21.36(5) for a temporary license, $10;21.37(6)(1) for each hour or fraction of one hour of course 21.38 approval for continuing education sought, $10; and 21.39(7)(2) for each continuing education course coordinator 21.40 approval, $100. 21.41 (b) All fees paid to the commissioner under this section 21.42 are nonrefundable, except that an overpayment of a fee shall be 21.43 returned upon proper application. 22.1 Sec. 2. Minnesota Statutes 1998, section 53A.03, is 22.2 amended to read: 22.3 53A.03 [APPLICATION FOR LICENSE; FEES.] 22.4 (a) An application for a license must be in writing, under 22.5 oath, and in the form prescribed and furnished by the 22.6 commissioner and must contain the following: 22.7 (1) the full name and address (both of residence and place 22.8 of business) of the applicant, and if the applicant is a 22.9 partnership or association, of every member, and the name and 22.10 business address if the applicant is a corporation; 22.11 (2) the county and municipality, with street and number, if 22.12 any, of all currency exchange locations operated by the 22.13 applicant; and 22.14 (3) the applicant's occupation or profession, for the ten 22.15 years immediately preceding the application; present or previous 22.16 connection with any other currency exchange in this or any other 22.17 state; whether the applicant has ever been convicted of any 22.18 crime; and the nature of the applicant's occupancy of the 22.19 premises to be licensed; and if the applicant is a partnership 22.20 or a corporation, the information specified in this paragraph 22.21 must be supplied for each partner and each officer and director 22.22 of the corporation. If the applicant is a partnership or a 22.23 nonpublicly held corporation, the information specified in this 22.24 paragraph must be required of each partner and each officer, 22.25 director, and stockholders owning in excess of ten percent of 22.26 the corporate stock of the corporation. 22.27 (b) The application shall be accompanied by a nonrefundable 22.28 fee of$250$1,000 for the review of the initial application. 22.29 Upon approval by the commissioner, an additional license fee 22.30 of$50$500 must be paid by the applicant as an annual license 22.31 fee for the remainder of the calendar year. An annual license 22.32 fee of$50$500 is due for each subsequent calendar year of 22.33 operation upon submission of a license renewal application on or 22.34 before September 1. Fees must be deposited in the state 22.35 treasury and credited to the general fund. Upon payment of the 22.36 required annual license fee, the commissioner shall issue a 23.1 license for the year beginning January 1. 23.2 (c) The commissioner shall require the applicant to submit 23.3 to a background investigation conducted by the bureau of 23.4 criminal apprehension as a condition of licensure. As part of 23.5 the background investigation, the bureau of criminal 23.6 apprehension shall conduct criminal history checks of Minnesota 23.7 records and is authorized to exchange fingerprints with the 23.8 Federal Bureau of Investigation for the purpose of a criminal 23.9 background check of the national files. The cost of the 23.10 investigation must be paid by the applicant. 23.11 (d) For purposes of this section, "applicant" includes an 23.12 employee who exercises management or policy control over the 23.13 company, a director, an officer, a limited or general partner, a 23.14 manager, or a shareholder holding more than ten percent of the 23.15 outstanding stock of the corporation. 23.16 Sec. 3. Minnesota Statutes 1998, section 53A.05, 23.17 subdivision 1, is amended to read: 23.18 Subdivision 1. [NAME OR LOCATION.] If a licensee proposes 23.19 to change the name or location of any or all of its currency 23.20 exchanges, the licensee shall file an application for approval 23.21 of the change with the commissioner. The commissioner shall not 23.22 approve a change of location if the requirements of sections 23.23 53A.02, subdivision 2, and 53A.04 have not been satisfied. If 23.24 the change is approved by the commissioner, the commissioner 23.25 shall issue an amended license in the licensee's new name or 23.26 location. A$50$100 fee must be paid for the amended license. 23.27 Sec. 4. Minnesota Statutes 1998, section 60A.14, 23.28 subdivision 1, is amended to read: 23.29 Subdivision 1. [FEES OTHER THAN EXAMINATION FEES.] In 23.30 addition to the fees and charges provided for examinations, the 23.31 following fees must be paid to the commissioner for deposit in 23.32 the general fund: 23.33 (a) by township mutual fire insurance companies: 23.34 (1) for filing certificate of incorporation $25 and 23.35 amendments thereto, $10; 23.36 (2) for filing annual statements, $15; 24.1 (3) for each annual certificate of authority, $15; 24.2 (4) for filing bylaws $25 and amendments thereto, $10. 24.3 (b) by other domestic and foreign companies including 24.4 fraternals and reciprocal exchanges: 24.5 (1) for filing certified copy of certificate of articles of 24.6 incorporation, $100; 24.7 (2) for filing annual statement, $225; 24.8 (3) for filing certified copy of amendment to certificate 24.9 or articles of incorporation, $100; 24.10 (4) for filing bylaws, $75 or amendments thereto, $75; 24.11 (5) for each company's certificate of authority, $575, 24.12 annually. 24.13 (c) the following general fees apply: 24.14 (1) for each certificate, including certified copy of 24.15 certificate of authority, renewal, valuation of life policies, 24.16 corporate condition or qualification, $25; 24.17 (2) for each copy of paper on file in the commissioner's 24.18 office 50 cents per page, and $2.50 for certifying the same; 24.19 (3) for license to procure insurance in unadmitted foreign 24.20 companies, $575; 24.21 (4) for valuing the policies of life insurance companies, 24.22 one cent per $1,000 of insurance so valued, provided that the 24.23 fee shall not exceed $13,000 per year for any company. The 24.24 commissioner may, in lieu of a valuation of the policies of any 24.25 foreign life insurance company admitted, or applying for 24.26 admission, to do business in this state, accept a certificate of 24.27 valuation from the company's own actuary or from the 24.28 commissioner of insurance of the state or territory in which the 24.29 company is domiciled; 24.30 (5) for receiving and filing certificates of policies by 24.31 the company's actuary, or by the commissioner of insurance of 24.32 any other state or territory, $50; 24.33 (6) for each appointment of an agent filed with the 24.34 commissioner, a domestic insurer shall remit $5 and all other 24.35 insurers shall remit $3; 24.36 (7) for filing forms and rates,$50$75 per filing; 25.1 (8) for annual renewal of surplus lines insurer license, 25.2 $300. 25.3 The commissioner shall adopt rules to define filings that 25.4 are subject to a fee. 25.5 Sec. 5. Minnesota Statutes 1998, section 60A.23, 25.6 subdivision 8, is amended to read: 25.7 Subd. 8. [SELF-INSURANCE OR INSURANCE PLAN ADMINISTRATORS 25.8 WHO ARE VENDORS OF RISK MANAGEMENT SERVICES.] (1) [SCOPE.] This 25.9 subdivision applies to any vendor of risk management services 25.10 and to any entity which administers, for compensation, a 25.11 self-insurance or insurance plan. This subdivision does not 25.12 apply (a) to an insurance company authorized to transact 25.13 insurance in this state, as defined by section 60A.06, 25.14 subdivision 1, clauses (4) and (5); (b) to a service plan 25.15 corporation, as defined by section 62C.02, subdivision 6; (c) to 25.16 a health maintenance organization, as defined by section 62D.02, 25.17 subdivision 4; (d) to an employer directly operating a 25.18 self-insurance plan for its employees' benefits; (e) to an 25.19 entity which administers a program of health benefits 25.20 established pursuant to a collective bargaining agreement 25.21 between an employer, or group or association of employers, and a 25.22 union or unions; or (f) to an entity which administers a 25.23 self-insurance or insurance plan if a licensed Minnesota insurer 25.24 is providing insurance to the plan and if the licensed insurer 25.25 has appointed the entity administering the plan as one of its 25.26 licensed agents within this state. 25.27 (2) [DEFINITIONS.] For purposes of this subdivision the 25.28 following terms have the meanings given them. 25.29 (a) "Administering a self-insurance or insurance plan" 25.30 means (i) processing, reviewing or paying claims, (ii) 25.31 establishing or operating funds and accounts, or (iii) otherwise 25.32 providing necessary administrative services in connection with 25.33 the operation of a self-insurance or insurance plan. 25.34 (b) "Employer" means an employer, as defined by section 25.35 62E.02, subdivision 2. 25.36 (c) "Entity" means any association, corporation, 26.1 partnership, sole proprietorship, trust, or other business 26.2 entity engaged in or transacting business in this state. 26.3 (d) "Self-insurance or insurance plan" means a plan 26.4 providing life, medical or hospital care, accident, sickness or 26.5 disability insurance for the benefit of employees or members of 26.6 an association, or a plan providing liability coverage for any 26.7 other risk or hazard, which is or is not directly insured or 26.8 provided by a licensed insurer, service plan corporation, or 26.9 health maintenance organization. 26.10 (e) "Vendor of risk management services" means an entity 26.11 providing for compensation actuarial, financial management, 26.12 accounting, legal or other services for the purpose of designing 26.13 and establishing a self-insurance or insurance plan for an 26.14 employer. 26.15 (3) [LICENSE.] No vendor of risk management services or 26.16 entity administering a self-insurance or insurance plan may 26.17 transact this business in this state unless it is licensed to do 26.18 so by the commissioner. An applicant for a license shall state 26.19 in writing the type of activities it seeks authorization to 26.20 engage in and the type of services it seeks authorization to 26.21 provide. The license may be granted only when the commissioner 26.22 is satisfied that the entity possesses the necessary 26.23 organization, background, expertise, and financial integrity to 26.24 supply the services sought to be offered. The commissioner may 26.25 issue a license subject to restrictions or limitations upon the 26.26 authorization, including the type of services which may be 26.27 supplied or the activities which may be engaged in. The license 26.28 fee is$500$1,000 for the initial application and$500$1,000 26.29 for each two-year renewal. All licenses are for a period of two 26.30 years. 26.31 (4) [REGULATORY RESTRICTIONS; POWERS OF THE COMMISSIONER.] 26.32 To assure that self-insurance or insurance plans are financially 26.33 solvent, are administered in a fair and equitable fashion, and 26.34 are processing claims and paying benefits in a prompt, fair, and 26.35 honest manner, vendors of risk management services and entities 26.36 administering insurance or self-insurance plans are subject to 27.1 the supervision and examination by the commissioner. Vendors of 27.2 risk management services, entities administering insurance or 27.3 self-insurance plans, and insurance or self-insurance plans 27.4 established or operated by them are subject to the trade 27.5 practice requirements of sections 72A.19 to 72A.30. In lieu of 27.6 an unlimited guarantee from a parent corporation for a vendor of 27.7 risk management services or an entity administering insurance or 27.8 self-insurance plans, the commissioner may accept a surety bond 27.9 in a form satisfactory to the commissioner in an amount equal to 27.10 120 percent of the total amount of claims handled by the 27.11 applicant in the prior year. If at any time the total amount of 27.12 claims handled during a year exceeds the amount upon which the 27.13 bond was calculated, the administrator shall immediately notify 27.14 the commissioner. The commissioner may require that the bond be 27.15 increased accordingly. 27.16 (5) [RULEMAKING AUTHORITY.] To carry out the purposes of 27.17 this subdivision, the commissioner may adopt rules pursuant to 27.18 sections 14.001 to 14.69. These rules may: 27.19 (a) establish reporting requirements for administrators of 27.20 insurance or self-insurance plans; 27.21 (b) establish standards and guidelines to assure the 27.22 adequacy of financing, reinsuring, and administration of 27.23 insurance or self-insurance plans; 27.24 (c) establish bonding requirements or other provisions 27.25 assuring the financial integrity of entities administering 27.26 insurance or self-insurance plans; or 27.27 (d) establish other reasonable requirements to further the 27.28 purposes of this subdivision. 27.29 Sec. 6. Minnesota Statutes 1998, section 60A.71, 27.30 subdivision 7, is amended to read: 27.31 Subd. 7. [FEES.] Each applicant for a reinsurance 27.32 intermediary license shall pay to the commissioner a fee of 27.33$160$200 for an initial two-year license and a fee of$120$150 27.34 for each renewal. Applications shall be submitted on forms 27.35 prescribed by the commissioner. 27.36 Sec. 7. Minnesota Statutes 1998, section 60K.06, 28.1 subdivision 2, is amended to read: 28.2 Subd. 2. [LICENSING FEES.] (a) In addition to the fees and 28.3 charges provided for examinations, each agent licensed pursuant 28.4 to section 60K.03 shall pay to the commissioner: 28.5 (1) a fee of$60$80 per license for an initial license 28.6 issued to an individual agent, and a fee of$60$80 for each 28.7 renewal; 28.8 (2) a fee of$160$200 for an initial license issued to a 28.9 partnership, limited liability company, or corporation, and a 28.10 fee of$120$150 for each renewal; 28.11 (3) a fee of $75 for an initial amendment (variable 28.12 annuity) to a license, and a fee of $50 for each renewal; and 28.13 (4) a fee of $500 for an initial surplus lines agent's 28.14 license, and a fee of $500 for each renewal. 28.15 (b) Persons whose applications have been properly and 28.16 timely filed who have not received notice of denial of renewal 28.17 are approved for renewal and may continue to transact business 28.18 whether or not the renewed license has been received on or 28.19 before November 1 of the renewal year. Applications for renewal 28.20 of a license are timely filed if received by the commissioner on 28.21 or before the 15th day preceding the license renewal date of the 28.22 applicant on forms duly executed and accompanied by appropriate 28.23 fees. An application mailed is considered timely filed if 28.24 addressed to the commissioner, with proper postage, and 28.25 postmarked on or before the 15th day preceding the licensing 28.26 renewal date of the applicant. 28.27 (c) Initial licenses issued under this section must be 28.28 valid for a period not to exceed two years. The commissioner 28.29 shall assign an expiration date to each initial license so that 28.30 approximately one-half of all licenses expire each year. Each 28.31 initial license must expire on October 31 of the expiration year 28.32 assigned by the commissioner. 28.33 (d) All fees shall be retained by the commissioner and are 28.34 nonreturnable, except that an overpayment of any fee must be 28.35 refunded upon proper application. 28.36 Sec. 8. Minnesota Statutes 1998, section 65B.48, 29.1 subdivision 3, is amended to read: 29.2 Subd. 3. Self-insurance, subject to approval of the 29.3 commissioner, is effected by filing with the commissioner in 29.4 satisfactory form: 29.5 (1) a continuing undertaking by the owner or other 29.6 appropriate person to pay tort liabilities or basic economic 29.7 loss benefits, or both, and to perform all other obligations 29.8 imposed by sections 65B.41 to 65B.71; 29.9 (2) evidence that appropriate provision exists for prompt 29.10 administration of all claims, benefits, and obligations provided 29.11 by sections 65B.41 to 65B.71; 29.12 (3) evidence that reliable financial arrangements, 29.13 deposits, or commitments exist providing assurance, 29.14 substantially equivalent to that afforded by a policy of 29.15 insurance complying with sections 65B.41 to 65B.71, for payment 29.16 of tort liabilities, basic economic loss benefits, and all other 29.17 obligations imposed by sections 65B.41 to 65B.71; and 29.18 (4) a nonrefundable initial application fee of$500$1,500 29.19 and an annual renewal fee of$100$400 for political 29.20 subdivisions and$250$500 for nonpolitical entities. 29.21 Sec. 9. Minnesota Statutes 1998, section 70A.14, 29.22 subdivision 4, is amended to read: 29.23 Subd. 4. [DURATION.] Licenses issued pursuant to this 29.24 section shall remain in effect until the licensee withdraws from 29.25 the state or until the license is suspended or revoked. The fee 29.26 for each license shall be$1,000$3,000, payable every three 29.27 years. 29.28 Sec. 10. Minnesota Statutes 1998, section 72B.04, 29.29 subdivision 10, is amended to read: 29.30 Subd. 10. [FEES.] A fee of$40$80 is imposed for each 29.31 initial license or temporary permit and$25$80 for each renewal 29.32 thereof or amendment thereto. A fee of $20 is imposed for the 29.33 registration of each nonlicensed adjuster who is required to 29.34 register under section 72B.06. All fees shall be transmitted to 29.35 the commissioner and shall be payable to the state treasurer. 29.36 If a fee is paid for an examination and if within one year from 30.1 the date of that payment no written request for a refund is 30.2 received by the commissioner or the examination for which the 30.3 fee was paid is not taken, the fee is forfeited to the state of 30.4 Minnesota. 30.5 Sec. 11. Minnesota Statutes 1998, section 79.255, 30.6 subdivision 10, is amended to read: 30.7 Subd. 10. [FEE.] A registration or exemption certificate 30.8 fee of$50$100 shall be paid. 30.9 Sec. 12. Minnesota Statutes 1998, section 80A.28, 30.10 subdivision 1, is amended to read: 30.11 Subdivision 1. (a) There shall be a filing fee of $100 for 30.12 every application for registration or notice filing. There 30.13 shall be an additional fee of one-tenth of one percent of the 30.14 maximum aggregate offering price at which the securities are to 30.15 be offered in this state, and the maximum combined fees shall 30.16 not exceed $300. 30.17 (b) When an application for registration is withdrawn 30.18 before the effective date or a preeffective stop order is 30.19 entered under section 80A.13, subdivision 1, all but the $100 30.20 filing fee shall be returned. If an application to register 30.21 securities is denied, the total of all fees received shall be 30.22 retained. 30.23 (c) Where a filing is made in connection with a federal 30.24 covered security under section 18(b)(2) of the Securities Act of 30.25 1933, there is a fee of $100 for every initial filing. If the 30.26 filing is made in connection with redeemable securities issued 30.27 by an open end management company or unit investment trust, as 30.28 defined in the Investment Company Act of 1940, there is an 30.29 additional fee of 1/20 of one percent of the maximum aggregate 30.30 offering price at which the securities are to be offered in this 30.31 state. If the filing is made in connection with redeemable 30.32 securities issued by such a company or trust, there is no 30.33 maximum fee for securities filings made according to this 30.34 paragraph. If the filing is made in connection with any other 30.35 federal covered security under Section 18(b)(2) of the 30.36 Securities Act of 1933, there is an additional fee of one-tenth 31.1 of one percent of the maximum aggregate offering price at which 31.2 the securities are to be offered in this state, and the combined 31.3 fees shall not exceed $300. Beginning with fiscal year 2000 and 31.4 continuing each fiscal year thereafter, upon completion of the 31.5 fiscal year, the commissioner shall determine the total amount 31.6 of all fees that were collected under this paragraph in 31.7 connection with any filings made during the last completed 31.8 fiscal year on behalf of a security that is a federal covered 31.9 security pursuant to section 18(b)(2) of the Securities Act of 31.10 1933. To the extent the total fees collected by the 31.11 commissioner in connection with such filings exceeds 31.12 $21,072,000, the commissioner shall refund, on a pro rata basis, 31.13 to all persons who paid any fees during such completed fiscal 31.14 year, the amount of such fees collected by the commissioner that 31.15 are in excess of $21,072,000. No refunds are required of 31.16 amounts of $100 or less for a fiscal year. 31.17 Sec. 13. Minnesota Statutes 1998, section 82A.08, 31.18 subdivision 2, is amended to read: 31.19 Subd. 2. [FEE.] Every annual report filed pursuant to this 31.20 section shall be accompanied by a fee of$100$500. 31.21 Sec. 14. Minnesota Statutes 1998, section 82A.16, 31.22 subdivision 2, is amended to read: 31.23 Subd. 2. [FEE AND CONTENTS.] A salesperson or broker may 31.24 apply for a license by filing a fee of$25$50 and an 31.25 application with the commissioner which includes the following 31.26 information: 31.27 (1) the applicant's name, age, residence address, and, in 31.28 the case of a salesperson, the name and place of business of the 31.29 membership camping operator or broker on whose behalf the 31.30 salesperson will be acting; 31.31 (2) the applicant's date and place of birth; 31.32 (3) a statement whether or not the applicant within the 31.33 past ten years has been convicted of a misdemeanor or felony 31.34 involving theft, fraud, or dishonesty or whether or not the 31.35 applicant within the past ten years has been enjoined from, had 31.36 any civil penalty assessed for, or been found to have engaged in 32.1 any violation of any securities, land sales, camping, or 32.2 consumer protection statutes; 32.3 (4) a statement whether or not the applicant is named as a 32.4 defendant in a pending criminal indictment or proceeding 32.5 involving fraud, theft, or dishonesty or is a defendant in a 32.6 pending lawsuit arising out of alleged violations of securities, 32.7 land sales, camping, or consumer protection statutes. A copy of 32.8 the charge, complaint, or lawsuit shall be provided to the 32.9 commissioner; 32.10 (5) a statement describing the applicant's employment 32.11 history for the past five years and whether or not any 32.12 termination of employment during the last five years was 32.13 occasioned by a theft, fraud, or act of dishonesty; 32.14 (6) an affidavit certifying that the applicant is 32.15 knowledgeable concerning the provisions of this section and 32.16 sections 82A.05, 82A.13, and 82A.14, and any rules adopted under 32.17 those sections; 32.18 (7) a statement whether or not the applicant has ever been 32.19 licensed by this state or its political subdivisions to engage 32.20 in any other business or profession; whether any such license 32.21 has been denied, suspended, or revoked and, if so, the 32.22 circumstances of the denial, suspension, or revocation; 32.23 (8) such other information as the commissioner may 32.24 reasonably deem necessary to administer the provisions of 32.25 sections 82A.01 to 82A.26, by rule or order. 32.26 Sec. 15. Minnesota Statutes 1998, section 82A.16, 32.27 subdivision 6, is amended to read: 32.28 Subd. 6. [RENEWAL.] The license of a salesperson and 32.29 broker shall be renewed annually by the filing of a form 32.30 prescribed by the commissioner and payment of a fee of$10$25. 32.31 Sec. 16. Minnesota Statutes 1998, section 116J.415, 32.32 subdivision 5, is amended to read: 32.33 Subd. 5. [LOAN CRITERIA.] The following criteria apply to 32.34 loans made under the challenge grant program: 32.35 (1) loans must be made to businesses that are not likely to 32.36 undertake a project for which loans are sought without 33.1 assistance from the challenge grant program; 33.2 (2) a loan must be used for a project designed principally 33.3 to benefit low-income persons through the creation of job or 33.4 business opportunities for them; 33.5 (3) the minimum loan is $5,000 and the maximum 33.6 is$100,000$200,000; 33.7 (4) a loan may not exceed 50 percent of the total cost of 33.8 an individual project; 33.9 (5) a loan may not be used for a retail development 33.10 project; and 33.11 (6) a business applying for a loan, except a 33.12 microenterprise loan under subdivision 6, must be sponsored by a 33.13 resolution of the governing body of the local governmental unit 33.14 within whose jurisdiction the project is located. 33.15 Sec. 17. Minnesota Statutes 1998, section 116J.421, 33.16 subdivision 3, is amended to read: 33.17 Subd. 3. [DUTIES.] The center shall: 33.18 (1) research and identify present and emerging social and 33.19 economic issues for rural Minnesota, including health care, 33.20 transportation, crime, housing, and job training; 33.21 (2) forge alliances and partnerships with rural communities 33.22 to find practical solutions to economic and social problems; 33.23 (3) provide a resource center for rural communities on 33.24 issues of importance to them; 33.25 (4) encourage collaboration across higher education 33.26 institutions to provide interdisciplinary team approaches to 33.27 problem solving with rural communities; and 33.28 (5) involve students in center projects. 33.29 Sec. 18. Minnesota Statutes 1998, section 116J.421, is 33.30 amended by adding a subdivision to read: 33.31 Subd. 6. [USED APPROPRIATION.] State appropriations to the 33.32 board, whether from the general fund or the rural policy and 33.33 development fund, may, at the discretion of the board, be 33.34 expended for administration of the center and to carry out its 33.35 duties under this section or under other law. 33.36 Sec. 19. Minnesota Statutes 1998, section 116J.421, is 34.1 amended by adding a subdivision to read: 34.2 Subd. 7. [BOARD COMPENSATION AND OTHER 34.3 FUNDS.] Compensation and expense reimbursement of board members 34.4 is as provided in section 15.0575, subdivision 3. 34.5 Sec. 20. Minnesota Statutes 1998, section 116J.63, 34.6 subdivision 4, is amended to read: 34.7 Subd. 4. The office of tourism may market tourism-related 34.8 publications, trade, and mediapromotional materialpromotion 34.9 and advertising programs and information distribution to 34.10 businesses and organizations. The proceeds from the marketing 34.11 must be placed in a specialaccountrevenue accounts and are 34.12 appropriated to the commissioner toprepare and distribute the34.13office's publications and media promotional materialsimplement 34.14 the programs for which the revenue is collected. 34.15 Sec. 21. Minnesota Statutes 1998, section 116J.8745, 34.16 subdivision 1, is amended to read: 34.17 Subdivision 1. [TECHNICAL ASSISTANCE; LOAN 34.18 ADMINISTRATION.] The commissioner of trade and economic 34.19 development shall make grants to nonprofit organizations to 34.20 provide technical assistance to individualswith entrepreneurial34.21plans that require microenterprise loans in an amount ranging34.22from approximately $1,000 to $25,000, and for loan34.23administration costs related to those microenterprise loans.34.24Microenterprise is a small business which employs under five34.25employees plus the owner and requires under $25,000 to startto 34.26 support the startup and growth of self-employment and 34.27 microbusinesses. Eligible businesses are microenterprises 34.28 employing under five people plus the owner and requiring under 34.29 $25,000 or no capital to start or expand the business. Eligible 34.30 expenses include loan administration costs related to providing 34.31 microenterprise loans. 34.32 Sec. 22. Minnesota Statutes 1998, section 116J.8745, 34.33 subdivision 2, is amended to read: 34.34 Subd. 2. [GRANT ELIGIBILITY AND ALLOCATION.] Nonprofit 34.35 organizations must apply for grants under this section following 34.36 procedures established by the commissioner. To be eligible for 35.1 a grant, an organization must demonstrate to the commissioner 35.2 that it has the appropriate expertise. The commissioner shall 35.3 give preference for grants to organizations that target 35.4 nontraditional entrepreneurs such as women, members of a 35.5 minority, low-income individuals, or persons seeking work who 35.6 are currently on or recently removed from welfare assistance. 35.7 An application must include: 35.8 (1) the local need for microenterprise support; 35.9 (2) proposed criteria for business eligibility; 35.10 (3) proposals for identifying and serving eligible 35.11 businesses; 35.12 (4) a description of technical assistance to be provided to 35.13 eligible businesses; 35.14 (5) proposals to coordinate technical assistance with 35.15 financial assistance;and35.16 (6) a demonstration of ability to collaborate with other 35.17 agencies including educational and financial institutions; and 35.18 (7) project goals identifying the number of eligible 35.19 businesses to be assisted with the state funds awarded under the 35.20 grant. 35.21 Sec. 23. [116J.9665] [WORLD TRADE CENTER.] 35.22 Subdivision 1. [DEFINITIONS.] For purposes of this 35.23 section, the following terms have the meaning given them: 35.24 (1) "Conference and service center" means the approximately 35.25 20,000 square feet of space on the third and fourth floors of 35.26 the Minnesota world trade center that the state of Minnesota has 35.27 the right to possess, occupy, and use subject to the terms and 35.28 conditions of the development agreement. 35.29 (2) "Development agreement" means the agreement entered 35.30 into by and between the world trade center board, as agent of 35.31 the state of Minnesota, and Oxford Development Minnesota, Inc. 35.32 dated July 27, 1984, and the amendments to that agreement, for 35.33 development and construction of a world trade center at a 35.34 designated site in Minnesota. 35.35 (3) "Minnesota world trade center" means the facility 35.36 constructed in accordance with the development agreement or 36.1 other facilities meeting the membership requirements of the 36.2 World Trade Centers Association. 36.3 Subd. 2. [GENERALLY.] The commissioner shall facilitate 36.4 and support Minnesota world trade center programs and services 36.5 and promote the Minnesota world trade center. 36.6 Subd. 3. [POWERS.] In furtherance of the goals set forth 36.7 in subdivision 2, and in addition to the powers granted by 36.8 sections 116J.035 and 116J.966, the commissioner may: 36.9 (1) define, formulate, administer, and deliver programs and 36.10 services through the world trade center; 36.11 (2) establish satellite operations of the Minnesota world 36.12 trade center within the continental United States; 36.13 (3) accept gifts and grants from other sources; 36.14 (4) set and collect fees for services and programs; 36.15 (5) adopt membership requirements for an association of 36.16 members of the Minnesota world trade center; 36.17 (6) participate jointly with private persons, firms, 36.18 corporations, or organizations or with public entities in 36.19 appropriate programs or projects and enter into contracts to 36.20 spend money to carry out those programs or projects; 36.21 (7) acquire and dispose of personal property, including 36.22 inchoate and intellectual property, royalties, stock, and stock 36.23 warrants; 36.24 (8) enter into contracts or agreements with a federal or 36.25 state agency, individual, business entity, or other 36.26 organization; 36.27 (9) acquire and dispose of real property or an interest in 36.28 real property; and 36.29 (10) hold and maintain membership for the Minnesota world 36.30 trade center in the World Trade Centers Association. 36.31 Performance of these powers is not subject to chapters 14, 36.32 16A, 16B, and 16C. 36.33 Subd. 4. [DUTIES.] The commissioner shall: 36.34 (1) promote and market the Minnesota world trade center and 36.35 membership in the World Trade Center Association; 36.36 (2) sponsor conferences or other promotional events in the 37.1 conference and service center; 37.2 (3) sponsor, develop, and conduct educational programs 37.3 related to international trade; 37.4 (4) establish and maintain an office in the Minnesota world 37.5 trade center; and 37.6 (5) not duplicate programs or services provided by the 37.7 commissioner of agriculture. 37.8 Subd. 5. [PROMOTIONAL EXPENSES.] The commissioner may 37.9 expend money to carry out this section. Promotional expenses 37.10 include, but are not limited to, expenses for the food, lodging, 37.11 and travel of consultants and speakers, and publications and 37.12 other forms of advertising. Promotional expenditures may be 37.13 made in the same manner as expenditures made by private persons, 37.14 firms, corporations, or associations for similar purposes, and 37.15 are not subject to regulation by the commissioner of employee 37.16 relations. 37.17 Subd. 6. [WORLD TRADE CENTER ACCOUNT.] The world trade 37.18 center account is in the special revenue fund. All money 37.19 received from the use of the conference and service center or 37.20 appropriated under this section must be deposited in the 37.21 account. Money in the account including interest earned is 37.22 appropriated to the commissioner and must be used exclusively 37.23 for the purposes of this section. 37.24 Subd. 7. [SERVICE INFORMATION; CLASSIFICATION OF DATA.] (a) 37.25 Service information, including databases, purchased by the 37.26 commissioner or developed by the commissioner for sale pursuant 37.27 to this section, is not subject to chapter 13. 37.28 (b) For purposes of this subdivision, "business transaction" 37.29 means a transaction between parties other than the 37.30 commissioner. The following data received or developed by the 37.31 commissioner is private with respect to data on individuals and 37.32 nonpublic with respect to data not on individuals: 37.33 (1) data relating to the financial condition of individuals 37.34 or businesses receiving or performing services by or on behalf 37.35 of the commissioner in furtherance of this section; 37.36 (2) at the request of either party to the transaction data 38.1 on business transactions; and 38.2 (3) at the request of the person or business seeking the 38.3 information, the identities of persons or businesses requesting 38.4 business or trade information from the commissioner, and the 38.5 nature of the trade information. 38.6 Subd. 8. [USE OF CONFERENCE AND SERVICE CENTER.] The 38.7 commissioner shall operate or provide for the operation of the 38.8 conference and service center. Priority use of the conference 38.9 and service center must be given to programs and activities 38.10 related to international trade. The commissioner may permit use 38.11 of the center for public benefits and other revenue-raising 38.12 purposes only after all requests for use of the center for 38.13 international business have been accommodated. 38.14 Sec. 24. Minnesota Statutes 1998, section 116L.03, 38.15 subdivision 5, is amended to read: 38.16 Subd. 5. [TERMS.] The terms of appointed members shall be 38.17 for four years except for the initial appointments. The initial 38.18 appointments of the governor shall have the following terms: 38.19 two members each for one, two, three, and four years. 38.20 Compensation for board members will be allowable as provided for 38.21 in section 15.0575, subdivision 3. 38.22 Sec. 25. Minnesota Statutes 1998, section 116L.04, 38.23 subdivision 1a, is amended to read: 38.24 Subd. 1a. [PATHWAYS PROGRAM.] The pathways program may 38.25 provide grants-in-aid for developing programs which assist in 38.26 the transition of persons from welfare to work. The program is 38.27 to be operated by the board. The board shall consult and 38.28 coordinate withthe Job Training Partnership Act, Title II-A,38.29 program administrators at the department of economic security to 38.30 design and provide services for temporary assistance for needy 38.31 families recipients. 38.32 Pathways grants-in-aid may be awarded to educational or 38.33 other nonprofit training institutions for education and training 38.34 programs that serve public assistance recipients transitioning 38.35 from public assistance to employment. 38.36 Preference shall be given to projects that: 39.1 (1) provide employment with benefits paid to employees; 39.2 (2) provide employment where there are defined career paths 39.3 for trainees; 39.4 (3) pilot the development of an educational pathway that 39.5 can be used on a continuing basis for transitioning persons from 39.6 public assistance directly to work; and 39.7 (4) demonstrate the active participation of department of 39.8 economic security workforce centers, Minnesota state college and 39.9 university institutions and other educational institutions, and 39.10 local welfare agencies. 39.11 Pathways projects must demonstrate the active involvement 39.12 and financial commitment of private business. Pathways projects 39.13 must be matched with cash or in-kind contributions on at least a 39.14 one-to-one ratio by participating private business. 39.15 A single grant to any one institution shall not exceed 39.16$200,000$400,000. 39.17 The board shall annually, by March 31, report to the 39.18 commissioners of economic security and trade and economic 39.19 development on pathways programs, including the number of public 39.20 assistance recipients participating in the program, the number 39.21 of participants placed in employment, the salary and benefits 39.22 they receive, and the state program costs per participant. 39.23 Sec. 26. Minnesota Statutes 1998, section 116L.06, 39.24 subdivision 4, is amended to read: 39.25 Subd. 4. [LOAN TERMS.] Loans may be secured or unsecured, 39.26 shall be for a term of no more thantwofive years, and shall 39.27 bear no interest. The maximum amount of a loan is $250,000. A 39.28 loan origination fee of up to two percent of the principal of 39.29 the loan may be charged. An employer may have only one 39.30 outstanding loan. The loans shall contain such other standard 39.31 commercial loan terms as the board deems appropriate. 39.32 Sec. 27. Minnesota Statutes 1998, section 175.17, is 39.33 amended to read: 39.34 175.17 [POWERS AND DUTIES, COMMISSIONER OF THE DEPARTMENT 39.35 OF LABOR AND INDUSTRY.] 39.36 (1) The commissioner shall administer the laws relating to 40.1 workers' compensation and the laws governing employees of the 40.2 state, a county, or other governmental subdivisions who contract 40.3 tuberculosis; 40.4 (2) The commissioner shall adopt reasonable and proper 40.5 rules governing rules of practice before the workers' 40.6 compensation division in matters which are not before a 40.7 compensation judge; 40.8 (3) The commissioner shall collect, collate, and publish 40.9 statistical and other information relating to work under the 40.10 department's jurisdiction and make public reports the 40.11 commissioner judges necessary, including such other reports as 40.12 may be required by law; 40.13 (4) The commissioner shall establish and maintain branch 40.14 offices as needed for the conduct of the affairs of the workers' 40.15 compensation division; 40.16 (5) The commissioner may: 40.17 (a) apply for, receive, and spend money received from 40.18 federal, municipal, county, regional, and other government 40.19 agencies and private sources; and 40.20 (b) apply for, accept, and disburse grants and other aids 40.21 from public and private sources. 40.22 Sec. 28. Minnesota Statutes 1998, section 176.181, 40.23 subdivision 2a, is amended to read: 40.24 Subd. 2a. [APPLICATION FEE.] Every initial application 40.25 filed pursuant to subdivision 2 requesting authority to 40.26 self-insure shall be accompanied by a nonrefundable fee of 40.27$2,500$4,000. When an employer seeks to be added as a member 40.28 of an existing approved group under section 79A.03, subdivision 40.29 6, the proposed new member shall pay a nonrefundable$250$400 40.30 application fee to the commissioner at the time of application. 40.31 Each annual report due August 1 under section 79A.03, 40.32 subdivision 9, shall be accompanied by an annual fee 40.33 of$200$500. 40.34 Sec. 29. [178.12] [APPRENTICESHIP REGISTRATION ACCOUNT IN 40.35 SPECIAL REVENUE FUND.] 40.36 The apprenticeship registration account is established in 41.1 the special revenue fund of the state treasury. An annual 41.2 registration fee will be charged to each sponsor for each 41.3 apprentice registered in the program. The fee is established at 41.4 $130 per apprentice. Subsequent adjustments to this fee will be 41.5 made pursuant to section 16A.1285, subdivision 2. The fees 41.6 collected and any interest earned are appropriated to the 41.7 commissioner for purposes of this chapter. 41.8 Sec. 30. Minnesota Statutes 1998, section 237.295, 41.9 subdivision 1, is amended to read: 41.10 Subdivision 1. [PAYMENT FOR INVESTIGATION.] (a) Whenever 41.11 the department or commission, in a proceeding upon its own 41.12 motion, on complaint, or upon an application to it, considers it 41.13 necessary, in order to carry out the duties imposed on it, to 41.14 investigate the books, accounts, practices, and activities of 41.15 any company, parties to the proceeding shall pay the expenses 41.16 reasonably attributable to the proceeding. The department and 41.17 commission shall ascertain the expenses, and the department 41.18 shall render a bill for those expenses to the parties, at the 41.19 conclusion of the proceeding. The department is authorized to 41.20 submit billings to parties at intervals selected by the 41.21 department during the course of a proceeding. 41.22 (b) The allocation of costs may be adjusted for cause by 41.23 the commission during the course of the proceeding, or upon the 41.24 closing of the docket and issuance of an order. In addition to 41.25 the rights granted in subdivision 3, parties to a proceeding may 41.26 object to the allocation at any time during the proceeding. 41.27 Withdrawal by a party to a proceeding does not absolve the party 41.28 from paying allocated costs as determined by the commission. 41.29 The commission may decide that a party should not pay any 41.30 allocated costs of the proceeding. 41.31 (c) The bill constitutes notice of the assessment and a 41.32 demand for payment. The amount of the bills assessed by the 41.33 department under this subdivision must be paid by the parties 41.34 into the state treasury within 30 days from the date of 41.35 assessment. The total amount, in a calendar year, for which a 41.36 telephone company may become liable, by reason of costs incurred 42.1 by the department and commission within that calendar year, may 42.2 not exceed two-fifths of one percent of the gross jurisdictional 42.3 operating revenue of the telephone company in the last preceding 42.4 calendar year. Direct charges may be assessed without regard to 42.5 this limitation until the gross jurisdictional operating revenue 42.6 of the telephone company for the preceding calendar year has 42.7 been reported for the first time. Where, under this 42.8 subdivision, costs are incurred within a calendar year that are 42.9 in excess of two-fifths of one percent of the gross 42.10 jurisdictional operating revenues, the excess costs are not 42.11 chargeable as part of the remainder under subdivision 2. 42.12 (d) Except as otherwise provided in paragraph (e), for 42.13 purposes of assessing the cost of a proceeding to a party, 42.14 "party" means any entity or group subject to the laws and rules 42.15 of this state, however organized, whether public or private, 42.16 whether domestic or foreign, whether for profit or nonprofit, 42.17 and whether natural, corporate, or political, such as a business 42.18 or commercial enterprise organized as any type or combination of 42.19 corporation, limited liability company, partnership, limited 42.20 liability partnership, proprietorship, association, cooperative, 42.21 joint venture, carrier, or utility, and any successor or 42.22 assignee of any of them; a social or charitable organization; 42.23 and any type or combination of political subdivision, which 42.24 includes the executive, judicial, or legislative branch of the 42.25 state, a local government unit, an agency of the state or a 42.26 local government unit, or a combination of any of them. 42.27 (e) For assessment and billing purposes, "party" does not 42.28 include: 42.29 (i) the department of public service or the residential 42.30 utilities division of the office of attorney general; any entity 42.31 or group instituted primarily for the purpose of mutual help and 42.32 not conducted for profit; intervenors awarded compensation under 42.33 section 237.075, subdivision 10; or any individual or group or 42.34 counsel for the individual or group representing the interests 42.35 of end users or classes of end users of services provided by 42.36 telephone companies or telecommunications carriers, as 43.1 determined by the commission.; 43.2 (ii) public entities participating as task force members, 43.3 offering comments, or requesting or appearing at a hearing in a 43.4 rulemaking proceeding under section 237.163, subdivision 8, 43.5 paragraph (a); or 43.6 (iii) public entities appearing before the commission 43.7 pursuant to a complaint brought under section 237.163, 43.8 subdivision 8, paragraph (b). 43.9 Sec. 31. Minnesota Statutes 1998, section 268.022, 43.10 subdivision 1, is amended to read: 43.11 Subdivision 1. [DETERMINATION AND COLLECTION OFSPECIAL 43.12 ASSESSMENT.] (a)In addition to all other taxes, assessments,43.13and payment obligations under chapter 268, each employer, except43.14an employer making payments in lieu of taxes is liable for a43.15special assessment levied at the rate of one-tenth of oneA 43.16 special assessment shall be levied during a calendar year upon 43.17 those employers which, pursuant to section 268.051, subdivision 43.18 1, are liable for reemployment insurance taxes, except an 43.19 employer that has, applicable to that calendar year: 43.20 (1) a reemployment insurance experience rating of zero 43.21 pursuant to section 268.051, subdivision 3; or 43.22 (2) been assigned the applicable reemployment insurance tax 43.23 rate for new employers pursuant to section 268.051, subdivision 43.24 5, paragraph (a). 43.25 The special assessment shall be .07 percentper yearon all 43.26 taxable wages, as defined in section268.04268.035, subdivision 43.2725b24. The special assessment shallbecome due andbe 43.28 paidby each employer to the departmenton the same schedule and 43.29 in the same manner asotherreemployment insurance taxes. 43.30 (b) The special assessmentlevied under this sectionis in 43.31 addition to, and shall not affect the computation ofany other43.32 reemployment insurance taxes, assessments,or other payment 43.33 obligationsdueunder this chapter. 43.34 (c)Notwithstanding any provision to the contrary,If on 43.35 June 30 of any year, beginning in the year 2001, the unobligated 43.36 balance of the special assessment fund under this section is 44.1 greater than$30,000,000$20,000,000, the special assessment for 44.2 the following calendar yearonlyshall belevied at a rate of44.31/20th of one0.03 percenton all taxable wages. 44.4 (d) If on July 1 of any year the seasonally adjusted total 44.5 rate of unemployment in Minnesota, as determined by the 44.6 commissioner, equaled or exceeded 5 percent for any six of the 44.7 prior 12 months, the commissioner may eliminate the exceptions 44.8 to assessment in paragraph (a), clauses (1) and (2), for the 44.9 following calendar year. 44.10 Sec. 32. Minnesota Statutes 1998, section 268.022, 44.11 subdivision 2, is amended to read: 44.12 Subd. 2. [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 44.13 The money collected under this section shall be deposited in the 44.14 state treasury and credited to a dedicated fund to provide for 44.15 the employment and training programs established under sections 44.16 268.975 to 268.98; including vocational guidance, training, 44.17 placement, and job development. 44.18 (b) All money in the dedicated fund is appropriated to the 44.19 commissioner who must act as the fiscal agent for the money and 44.20 must disburse the money for the purposes of this section, not 44.21 allowing the money to be used for any other obligation of the 44.22 state. All money in the dedicated fund shall be deposited, 44.23 administered, and disbursed in the same manner and under the 44.24 same conditions and requirements as are provided by law for the 44.25 other dedicated funds in the state treasury, except that all 44.26 interest or net income resulting from the investment or deposit 44.27 of money in the fund shall accrue to the fund for the purposes 44.28 of the fund. 44.29 (c) No more than five percent of the dedicated funds 44.30 collected in each fiscal year may be used by the department of 44.31 economic security for its administrative costs. 44.32 (d) Reimbursement for costs related to collection of the 44.33 special assessment shall be in an amount negotiated between the 44.34 commissioner and the United States Department of Labor. 44.35 (e) The dedicated funds, less amounts under paragraphs (c) 44.36 and (d) shall be allocated as follows: 45.1 (1) 40 percent to be allocated annually to substate 45.2 grantees for provision of expeditious response activities under 45.3 section 268.9771 and worker adjustment services under section 45.4 268.9781; and 45.5 (2) 60 percent to be allocated to activities and programs 45.6 authorized under sections 268.975 to 268.98. 45.7 (f) Any funds not allocated, obligated, or expended in a 45.8 fiscal year shall be available for allocation, obligation, and 45.9 expenditure in the following fiscal year. 45.10 Sec. 33. Minnesota Statutes 1998, section 268.98, 45.11 subdivision 3, is amended to read: 45.12 Subd. 3. [COST LIMITATIONS.] (a) For purposes of sections 45.13 268.9781 and 268.9782, funds allocated to a grantee are subject 45.14 to the following limitations: 45.15 (1) a maximum of 15 percent for administration in a worker 45.16 adjustment services plan and ten percent in a dislocation event 45.17 services grant; 45.18 (2) a minimum of 50 percent for provision of training 45.19 assistance; 45.20 (3)a minimum of ten percent and maximum of 30 percent for45.21provision of support services; andno more than five percent 45.22 statewide may be allocated annually for support services, as 45.23 defined in section 268.975, subdivision 13; and 45.24 (4) the balance used for provision of basic readjustment 45.25 assistance. 45.26 (b) A waiver of the cost limitation on providing training 45.27 assistance may be requested. The waiver may not permit less 45.28 than 30 percent of the funds be spent on training assistance. 45.29 (c) The commissioner shall prescribe the form and manner 45.30 for submission of an application for a waiver under paragraph 45.31 (b). Criteria for granting a waiver shall be established by the 45.32 commissioner in consultation with the workforce development 45.33 council. 45.34 Sec. 34. Minnesota Statutes 1998, section 298.22, 45.35 subdivision 2, is amended to read: 45.36 Subd. 2. [IRON RANGE RESOURCES AND REHABILITATION BOARD.] 46.1 There is hereby created the iron range resources and 46.2 rehabilitation board, consisting of 11 members,fiveten of whom 46.3 arestate senatorsappointed by thesubcommittee on committees46.4of the rules committee of the senate, and five of whom are46.5representatives, appointed by the speaker of the house of46.6representatives. The members shall be appointed in January of46.7every odd-numbered yeargovernor, with advice and consent of the 46.8 senate. Terms, removal, compensation, and filling of vacancies 46.9 are governed by section 15.0575. No more than six members of 46.10 the board may support the same political party. The 11th member 46.11 of the board is the commissioner of natural resources. 46.12Vacancies on the board shall be filled in the same manner as the46.13original members were chosen. At least a majority of the46.14legislativeAll members of the boardshall be elected from state46.15senatorial or legislative districts in which over 50 percent of46.16the residentsother than the commissioner of natural resources 46.17 must reside within a tax relief area as defined in section 46.18 273.134. All expenditures and projects made by the commissioner 46.19 of iron range resources and rehabilitation shall first be 46.20 submitted to the iron range resources and rehabilitation board 46.21 for approval by at least eight board members of expenditures and 46.22 projects for rehabilitation purposes as provided by this 46.23 section, and the method, manner, and time of payment of all 46.24 funds proposed to be disbursed shall be first approved or 46.25 disapproved by the board. The board shall biennially make its 46.26 report to the governor and the legislature on or before November 46.27 15 of each even-numbered year. The expenses of the board shall 46.28 be paid by the state from the funds raised pursuant to this 46.29 section. 46.30 Sec. 35. Minnesota Statutes 1998, section 326.244, 46.31 subdivision 2, is amended to read: 46.32 Subd. 2. [PROCEDURE.] (a) At or before commencement of any 46.33 installation required to be inspected by the board, the 46.34 electrical contractor, installer, special electrician, or owner 46.35 making the installation shall submit to the board a request for 46.36 inspection, in a form prescribed by the board, together with the 47.1 fees required for the installation. 47.2 (b) The fees required are a handling fee and an inspection 47.3 fee, in the amounts set forth in subdivision 6.The handling47.4fee shall be set by the board in an amount sufficient to pay the47.5cost of printing and handling the form requesting an47.6inspection. The inspection fee shall be set by the board in an47.7amount sufficient to pay the actual costs of the inspection and47.8the board's costs in administering the inspection. All fees47.9shall be set pursuant to the procedure of sections 14.001 to47.1014.69.47.11 (c) If the inspector finds that the installation is not in 47.12 compliance with accepted standards of construction for safety to 47.13 life and property as required by section 326.243, the inspector 47.14 shall by written order condemn the installation or noncomplying 47.15 portion thereof, or order service to the installation 47.16 disconnected, and shall send a copy of the order to the board. 47.17 If the installation or the noncomplying part will seriously and 47.18 proximately endanger human life and property, the order of the 47.19 inspector, when approved by the inspector's superior, shall 47.20 require immediate condemnation or disconnection. In all other 47.21 cases, the order of the inspector shall permit a reasonable 47.22 opportunity for the installation to be brought into compliance 47.23 with accepted standards of construction for safety to life and 47.24 property prior to the effective time established for 47.25 condemnation or disconnection. 47.26 (d) Copies of each condemnation or disconnection order 47.27 shall be served personally or by mail upon the property owner, 47.28 and the electrical contractor, installer, or special electrician 47.29 making the installation, and other persons as the board by rule 47.30 may direct. An aggrieved party may appeal any condemnation or 47.31 disconnection order by filing with the board a notice of appeal 47.32 within ten days after (1) service upon the aggrieved party of 47.33 the condemnation or disconnection order, if this service is 47.34 required, or (2) filing of the order with the board, whichever 47.35 is later. The appeal shall proceed and the order of the 47.36 inspector shall have the effect the order, by its terms, and the 48.1 rules of the board provides. The board shall adopt rules 48.2 providing procedures for the conduct of appeals, including 48.3 provisions for the stay of enforcement of the order of the 48.4 inspector pending such appeal when justified by the 48.5 circumstances. 48.6 Sec. 36. Minnesota Statutes 1998, section 326.244, is 48.7 amended by adding a subdivision to read: 48.8 Subd. 6. [FEE SCHEDULE.] State electrical inspection fees 48.9 shall be paid according to the following schedule. 48.10 (a) The minimum fee for each separate inspection of an 48.11 installation, replacement, alteration, or repair limited to one 48.12 inspection only is $15. 48.13 (b) The inspection fee for each service, change of service, 48.14 temporary service, power supply unit, addition, alteration, or 48.15 repair to a service or power supply unit shall be: 0- to and 48.16 including 200-ampere capacity, $15; for each additional 48.17 100-ampere capacity or fraction thereof, $5. A separate request 48.18 for electrical inspection shall be filed for temporary services. 48.19 (c) The fee for each circuit or feeder, or addition, 48.20 alteration, or repair of a circuit or feeder including the 48.21 equipment served, and including circuits fed from feeders, 48.22 except as provided for in paragraph (d), clauses (1) to (11), 48.23 shall be: 48.24 (1) 0- to and including 100-ampere capacity, $4; and 48.25 (2) for each additional 100-ampere capacity or fraction 48.26 thereof, $2. 48.27 (d) Limitations and additions to the fees of paragraphs (a) 48.28 to (c): 48.29 (1) The fee for a single-family dwelling shall not exceed 48.30 $55 if the electrical service is not over 200-ampere capacity. 48.31 This fee includes not more than three inspections. The fee for 48.32 a single-family dwelling over 200- to and including 400-ampere 48.33 capacity shall not exceed $100. This fee includes not more than 48.34 four inspections. These fees shall apply to each separate 48.35 service, and include the service, feeders, circuits, fixtures, 48.36 and equipment. The fee for additional inspections shall be the 49.1 reinspection fee in paragraph (f). Multifamily dwellings with 49.2 individual services to each unit are computed at the 49.3 single-family dwelling rate. 49.4 (2) The fee for each farm building or farm structure with a 49.5 service not over 200-ampere capacity shall not exceed $55. This 49.6 fee includes not more than three inspections. The fee for each 49.7 building or structure with a service over 200- to and including 49.8 400-ampere capacity shall not exceed $100. This fee includes 49.9 not more than four inspections. These fees include the 49.10 services, feeders, circuits, fixtures, and equipment. The fee 49.11 for additional inspections shall be the reinspection fee in 49.12 paragraph (f). Pole-top current metering and pole-top 49.13 disconnecting means on the farm yard pole are exempt from 49.14 inspection and inspection fees. 49.15 (3) The fee for each unit of a multifamily dwelling having 49.16 three to six dwelling units shall not exceed $30. The fee for 49.17 each multifamily dwelling exceeding six units shall not exceed 49.18 $20 per dwelling unit. This fee includes only the wiring in an 49.19 individual dwelling unit and the final feeder to that unit. The 49.20 fee for the service and all other circuits shall be as specified 49.21 in paragraphs (a) to (c), except that the fee for each house 49.22 panel shall not exceed $55. A separate request for electrical 49.23 inspection is required for each building. The fee for a 49.24 two-unit dwelling or duplex shall be the same as for two 49.25 single-family dwellings. 49.26 (4) Recreational vehicle parks fees shall be in accordance 49.27 with paragraphs (a) to (c). 49.28 (5) The fee for mobile home park stalls shall be $6 per 49.29 unit stall exclusive of the feeder to the mobile home with a 49.30 minimum fee of $15 per inspection trip. The fee for permanently 49.31 installed feeders shall be in accordance with paragraph (c). 49.32 (6) In addition to the preceding fees in this paragraph, 49.33 the fee for each street lighting standard shall be $1, and the 49.34 fee for each traffic signal standard shall be $2. Circuits 49.35 originating within the standard shall not be used when computing 49.36 the fee. 50.1 (7) In addition to the preceding fees in this paragraph, 50.2 the fees for all transformers and generators for light, heat, 50.3 and power shall be $5 per unit plus $3 per ten-kilovolt-amperes 50.4 or fraction thereof. The maximum fee for a transformer or 50.5 generator in this category is $40. 50.6 (8) In addition to the preceding fees in this paragraph, 50.7 the inspection fees for transformers for signs and outline 50.8 lighting shall be $5 per unit. 50.9 (9) In addition to the preceding fees in this paragraph, 50.10 unless included in the maximum fee, the inspection fee for 50.11 remote control, signal, alarm, or communication circuits and 50.12 circuits of less than 50 volts shall be $5 for ten openings or 50.13 devices of each system plus $2 for each additional ten or 50.14 fraction thereof, with a minimum fee of $15 per inspection trip. 50.15 (10) In addition to the preceding fees in this paragraph, 50.16 the inspection fee for each separate inspection of a swimming 50.17 pool shall be $15. Reinforcing steel and bonding for swimming 50.18 pools requires a rough-in inspection. 50.19 (11) In addition to the preceding fees in this paragraph, 50.20 the fee for all wiring on center pivot irrigation booms shall be 50.21 $30. The fees for all other wiring for the irrigation system 50.22 shall be as specified in this subdivision. 50.23 (e) Investigation fees: Work without a request for 50.24 electrical inspection. 50.25 (1) Whenever any work for which a request for electrical 50.26 inspection is required by the board has begun without first 50.27 obtaining the request for inspection, a special investigation 50.28 shall be made before a request for electrical inspection is 50.29 accepted by the board. 50.30 (2) An investigation fee, in addition to the full fee 50.31 required by paragraphs (a) to (d), shall be paid before an 50.32 inspection is made. The investigation fee shall be equal to the 50.33 amount of the fee required by paragraphs (a) to (d). The 50.34 payment of the investigation fee does not exempt any person from 50.35 compliance with all other provisions of the board rules or 50.36 statutes nor from any penalty prescribed by law. 51.1 (f) When reinspection is necessary to determine whether 51.2 unsafe conditions have been corrected and the conditions are not 51.3 the subject of an appeal pending before the board or any court, 51.4 a reinspection fee of $15 may be assessed in writing by the 51.5 inspector. 51.6 (g) For inspections not covered in this subdivision, or for 51.7 requested special inspections or services, the fee shall be $23 51.8 per hour, including travel time, plus 24 cents per mile 51.9 traveled, plus the reasonable cost of equipment or material 51.10 consumed. This provision is applicable to inspection of empty 51.11 conduits and other jobs as may be determined by the board. 51.12 (h) For inspection of transient projects, including but not 51.13 limited to carnivals and circuses, the inspection fees shall be 51.14 as specified in this paragraph. 51.15 The fee for inspection of power supply units shall be that 51.16 fee specified in paragraph (b). A like fee will be required for 51.17 power supply units at each engagement during the season. Rides, 51.18 devices, or concessions shall be inspected at their first 51.19 appearance of the season, and the inspection fee shall be $15 51.20 per unit. 51.21 In addition to the fee for the power supply units, there 51.22 shall be a general inspection for each engagement during the 51.23 season at the hourly rate, with a two-hour minimum. In addition 51.24 to the above fees, inspections required on Saturdays, Sundays, 51.25 holidays, or after regular business hours will be at the hourly 51.26 rate, including travel time. An owner of a migratory amusement 51.27 enterprise shall notify the board of its season itinerary and 51.28 make application for initial inspection a minimum of 14 days 51.29 before its first engagement in the state. For subsequent 51.30 engagements not listed on the itinerary sent to the board, where 51.31 the board is not notified at least 48 hours in advance, a charge 51.32 of $100 will be made in addition to all required fees. Also, a 51.33 fee at the hourly rate will be charged for additional time spent 51.34 by the inspector if the equipment is not ready for inspection at 51.35 the time and date specified on the request for electrical 51.36 inspection. The fee for reinspection of corrections is $15 for 52.1 each reinspection. 52.2 (i) The handling fee to pay the cost of printing and 52.3 handling of the form requesting an inspection shall be $1. 52.4 Sec. 37. Minnesota Statutes 1998, section 326.86, 52.5 subdivision 1, is amended to read: 52.6 Subdivision 1. [LICENSING FEE.] The licensing fee for 52.7 persons licensed pursuant to sections 326.83 to 326.991 52.8 is$75$100 per year.The commissioner may adjust the fees52.9under section 16A.1285 to recover the costs of administration52.10and enforcement. The fees must be limited to the cost of52.11license administration and enforcement and must be deposited in52.12the state treasury and credited to the general fund.52.13 Sec. 38. Minnesota Statutes 1998, section 446A.072, 52.14 subdivision 4, is amended to read: 52.15 Subd. 4. [FUNDING LEVEL.] (a) The authority shall provide 52.16 supplemental assistance for essential project component costs as 52.17 certified by the commissioner of the pollution control agency 52.18 under section 116.182, subdivision 4. 52.19 (b) A municipality may not receive more than $4,000,000 52.20 under this section unless specifically approved by law. 52.21 (c) The authority shall provide supplemental assistance for 52.22 up to one-half of the eligible grant funding level determined by 52.23 the United States Department of Agriculture Rural Development 52.24 funding for projects listed on the agency's project priority 52.25 list, in priority order. For municipalities that are not 52.26 eligible for United States Department of Agriculture Rural 52.27 Development funding for wastewater, the authority shall provide 52.28 supplemental assistance for: (1) essential project component 52.29 costs calculated by first determining the amount needed to 52.30 reduce a municipality's annual residential sewer costs to 1.4 52.31 percent of the municipality's median household income or $25 per 52.32 month per household, whichever is greater, and then multiplying 52.33 that amount by 80 percent to determine the actual award amount 52.34 to supplement loans under section 446A.07; and (2) up to 50 52.35 percent of the incremental costs specifically identified by the 52.36 agency as being attributable to more stringent wastewater 53.1 standards required to protect outstanding resource value waters 53.2 or outstanding international resource value waters. 53.3 (d) Notwithstanding paragraph (b), in the event that a 53.4 municipality's monthly residential sewer service charges average 53.5 above $50, the authority will provide 90 percent of the grant 53.6 amount needed to reduce the average monthly sewer service charge 53.7 to $50, provided the project is ranked in the top 50 percentile 53.8 of the agency's intended use plan. 53.9 (e)Notwithstanding paragraphs (b), (c), and (d), a53.10municipality with an annual median household income of $40,00053.11or greater shall not be eligible for a grant, except for53.12incremental costs specifically identified by the agency as being53.13attributable to more stringent wastewater standards required to53.14protect outstanding resource value waters or outstanding53.15international resource value waters.53.16(f)The authority shall provide supplemental assistance to 53.17 a municipality that would not otherwise qualify for supplemental 53.18 assistance if: 53.19 (1) the municipality voluntarily accepts a sewer connection 53.20 from another governmental unit to serve residential, industrial, 53.21 or commercial developments that were completed before March 1, 53.22 1996, or are on lots whose plats were recorded before that date; 53.23 and 53.24 (2) fees charged by the municipality for the connection 53.25 must take into account state and federal grants used by the 53.26 municipality for the construction of the treatment plant. 53.27 The amount of supplemental assistance under this paragraph must 53.28 be sufficient to reduce debt service payments under section 53.29 446A.07 to an extent equivalent to a zero percent loan in an 53.30 amount up to the other governmental unit's project costs 53.31 necessary for connection. Eligibility for supplemental 53.32 assistance under this paragraph ends three years after the 53.33 agency certifies that the connection has met the operational 53.34 performance standards established by the agency. 53.35 Sec. 39. Minnesota Statutes 1998, section 462A.20, 53.36 subdivision 2, is amended to read: 54.1 Subd. 2. [WHICH MONEY IN FUND.] There shall be paid into 54.2 the housing development fund: 54.3 (a) Any moneys appropriated and made available by the state 54.4 for the purposes of the fund; 54.5 (b) Any moneys which the agency receives in repayment of 54.6 advances made from the fund; 54.7 (c) Any other moneys which may be made available to the 54.8 agency for the purpose of the fund from any other source or 54.9 sources; 54.10 (d) All fees and charges collected by the agency; 54.11 (e) All interest or other income not required by the 54.12 provisions of a resolution or indenture securing notes or bonds 54.13 to be paid into another special fund; but the agency shall not54.14expend money for its cost of general administration of agency54.15programs in any fiscal year in excess of such limit for such54.16fiscal year as may be established by law. "Cost of general54.17administration of agency programs" does not include debt54.18service, amortization of deferred financing costs, loan54.19origination costs, professional and other contractual services,54.20any deposit or expenditure required to be made by the provisions54.21of a bond or note resolution or indenture, or any deposit or54.22expenditure made to preserve the security for the bonds or notes. 54.23 Sec. 40. Minnesota Statutes 1998, section 462A.20, is 54.24 amended by adding a subdivision to read: 54.25 Subd. 2a. [OPERATING COSTS REPORT.] On or before February 54.26 15 of each year, the agency shall deliver a report to the chairs 54.27 of the finance and appropriations committees of the legislature 54.28 on the costs of operating the agency in the previous fiscal year. 54.29 The report shall include the expenditures for salaries and 54.30 benefits, rent, professional and technical services, general 54.31 agency administration, and agency's audited financial statements 54.32 which include information on expenditures and receipts relating 54.33 to debt issuance and administration and loan origination and 54.34 administration. The report shall include a budget plan for 54.35 salaries and benefits, rent, professional and technical 54.36 services, and general administration for the current fiscal 55.1 year, including estimates of changes in costs from the previous 55.2 fiscal year. If it appears that the costs in the current fiscal 55.3 year will exceed the budget plan contained in the report 55.4 submitted under this subdivision, the agency must submit a 55.5 revised budget plan to the commissioner of finance and obtain 55.6 the commissioner's concurrence with the revised plan. 55.7 Sec. 41. Minnesota Statutes 1998, section 462A.204, is 55.8 amended by adding a subdivision to read: 55.9 Subd. 8. [SCHOOL STABILITY DEMONSTRATION.] (a) The agency 55.10 in consultation with the interagency task force on homelessness 55.11 may establish a school stability demonstration project under the 55.12 family homeless prevention and assistance program. The purpose 55.13 of the demonstration project is to secure stable housing for 55.14 families with school-age children who have moved frequently and 55.15 for unaccompanied youth. For purposes of this subdivision, 55.16 "unaccompanied youth" are minors who are leaving foster care or 55.17 juvenile correctional facilities, or minors who meet the 55.18 definition of a child in need of services or protection under 55.19 section 260.015, subdivision 2a, but for whom no court finding 55.20 has been made pursuant to that statute. 55.21 (b) The agency shall make grants to family homeless 55.22 prevention and assistance projects in communities with a school 55.23 or schools that have a significant degree of student mobility. 55.24 (c) Each demonstration project must be designed to reduce 55.25 school absenteeism; stabilize children in one home setting, or 55.26 at a minimum, in one school setting; and reduce shelter usage. 55.27 Each demonstration project must include plans for the following: 55.28 (1) targeting of families with children under age 12 who, 55.29 in the last 12 months have either: changed schools or homes at 55.30 least once or been absent from school at least 15 percent of the 55.31 school year and who have either been evicted from their housing; 55.32 are living in overcrowded or hazardous lead conditions in their 55.33 current housing; or are paying more than 50 percent of their 55.34 income for rent; 55.35 (2) targeting of unaccompanied youth in need of an 55.36 alternative residential setting; 56.1 (3) connecting families with the social services necessary 56.2 to maintain the family's stability in their home; 56.3 (4) connecting families with job training programs; 56.4 (5) assessing the impact of the demonstration project on 56.5 student performance and report its findings to the agency; and 56.6 (6) one or more of the following: 56.7 (i) provision of rental assistance for a specified period 56.8 of time, which may exceed 24 months provided they have applied 56.9 for section 8 housing assistance; or 56.10 (ii) development of permanent supportive housing or 56.11 transitional housing. 56.12 (d) Notwithstanding subdivision 2, grants under this 56.13 section may be used to acquire, rehabilitate, or construct 56.14 transitional or permanent housing. 56.15 (e) Each grantee under the demonstration project must 56.16 include representatives of the local school district or targeted 56.17 schools, or both, and of the local community correction agencies 56.18 on its advisory committee. 56.19 (f) Beginning in 2001, each grantee shall submit an annual 56.20 demonstration project report to the state interagency task force 56.21 on homelessness. The report must include the actual program 56.22 results compared to program objectives, including for the 56.23 families served in the project a comparison before and after 56.24 assistance from the demonstration project of the rate of school 56.25 absenteeism, the number of residential and school moves, and the 56.26 number of incidents and length of homeless shelter usage, and 56.27 academic progress. 56.28 Sec. 42. Minnesota Statutes 1998, section 462A.209, is 56.29 amended to read: 56.30 462A.209 [HOME OWNERSHIP ASSISTANCE.] 56.31 Subdivision 1. [FULL CYCLE HOME OWNERSHIP SERVICES.] The 56.32 full cycle home ownership services program shall be used to fund 56.33 nonprofit organizations and political subdivisions providing, 56.34 building capacity to provide, or supporting full cycle lending 56.35 for home ownership to low and moderate income home buyers and 56.36 homeowners, including seniors. The purpose of the program is to 57.1 encourage private investment in affordable housing and 57.2 collaboration of nonprofit organizations and political 57.3 subdivisions with each other and private lenders in providing 57.4 full cycle lending services. 57.5 Subd. 2. [DEFINITION.] "Full cycle home ownership 57.6 services" means supporting eligible home buyers and owners 57.7 through all phases of purchasing and keeping a home, by 57.8 providing prepurchase home buyer education, prepurchase 57.9 counseling and credit repair, prepurchase property inspection 57.10 and technical and financial assistance to buyers in 57.11 rehabilitating the home, postpurchaseandcounseling including 57.12 home equity conversion loan counseling, mortgage default 57.13 counseling, postpurchase assistance with home maintenance, entry 57.14 cost assistance, and access to flexible loan products. 57.15 Subd. 3. [ELIGIBILITY.] The agency shall establish 57.16 eligibility criteria for nonprofit organizations and political 57.17 subdivisions to receive funding under this section. The 57.18 eligibility criteria must require the nonprofit organization or 57.19 political subdivision to provide, to build capacity to provide, 57.20 or support full cycle home ownership services for eligible home 57.21 buyers. The agency may fund a nonprofit organization or 57.22 political subdivision that will provide full cycle home 57.23 ownership services by coordinating with one or more other 57.24 organizations that will provide specific components of full 57.25 cycle home ownership services. The agency may make exceptions 57.26 to providing all components of full cycle lending if justified 57.27 by the application. If there are more applicants requesting 57.28 funding than there are funds available, the agency shall award 57.29 the funds on a competitive basis and also assure an equitable 57.30 geographic distribution of the available funds. The eligibility 57.31 criteria must require the nonprofit organization or political 57.32 subdivision to have a demonstrated involvement in the local 57.33 community and to target the housing affordability needs of the 57.34 local community or, in the case of home equity conversion loan 57.35 counseling, to have demonstrated experience with counseling 57.36 older persons on housing, to be knowledgeable about programs in 58.1 Minnesota that may provide alternatives to home equity 58.2 conversion, and to provide the counseling in Minnesota. 58.3 Partnerships and collaboration with innovative, grass roots, or 58.4 community-based initiatives shall be encouraged. The agency 58.5 shall give priority to nonprofit organizations and political 58.6 subdivisions that provide matching funds. Applicants for funds 58.7 under section 462A.057 may also apply funds under this program. 58.8 Subd. 4. [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] 58.9 The agency may establish an entry cost home ownership 58.10 opportunity program, on terms and conditions it deems advisable, 58.11 to assist individuals with downpayment and closing costs to 58.12 finance the purchase of a home. 58.13 Sec. 43. Minnesota Statutes 1998, section 462A.21, is 58.14 amended by adding a subdivision to read: 58.15 Subd. 25. [FULL CYCLE HOMEOWNERSHIP SERVICES.] The agency 58.16 may spend money for the purposes of section 462A.209 and may pay 58.17 the costs and expenses necessary and incidental to the 58.18 development and operation of the program. 58.19 Sec. 44. [ACCOUNTABILITY MEASURES.] 58.20 The commissioner of economic security shall adopt 58.21 accountability measures to ensure that money from the dedicated 58.22 fund established under Minnesota Statutes, section 268.022, 58.23 allocated for training assistance and support services, as 58.24 defined in Minnesota Statutes, section 268.975, subdivisions 12 58.25 and 13, is used to further the purposes of the program. The 58.26 commissioner shall report to the legislature by October 1, 1999, 58.27 on the accountability measures and shall make the measures 58.28 effective by November 1, 1999. 58.29 Sec. 45. [GRANT REQUIREMENTS WAIVED.] 58.30 A grant by the commissioner of trade and economic 58.31 development to Grant county for community infrastructure 58.32 improvements needed to develop value-added agriprocessing 58.33 facilities is not subject to the maximum grant limitation of 58.34 Minnesota Statutes, section 116J.8731, subdivision 5, or agency 58.35 policy regarding maximum grant per job created. 58.36 Sec. 46. [REPORT TO LEGISLATURE.] 59.1 The commissioner of the Minnesota housing finance agency 59.2 shall report to the legislature by February 1, 2001, on current 59.3 and proposed strategies related to HIV/AIDS for coordinating 59.4 local, state, and federal housing resources to address 59.5 identified opportunities and needs, plans for future 59.6 implementation, and recommendations for future legislative 59.7 action. The commissioner shall consult with the commissioners 59.8 of health and human services and representatives of affected 59.9 populations in preparing this report. 59.10 Sec. 47. [PRINCIPLES ESTABLISHED.] 59.11 When considering potential state investments to assist 59.12 Minnesota's mining industry, the commissioner of trade and 59.13 economic development will consider the following principles: 59.14 (1) any state investment should receive a direct financial 59.15 return and should be structured as a loan or equity investment; 59.16 (2) investment decisions should take into account the 59.17 evolution of the entire mining industry and should not be made 59.18 solely with reference to individual projects; 59.19 (3) in the case of large development projects, state funds 59.20 should be disbursed at the same time as the majority of other 59.21 funds committed to the project and should not be available for 59.22 predevelopment or early stage funding; 59.23 (4) the commissioner of trade and economic development will 59.24 direct consideration of state investments in the mining industry 59.25 in consultation with the commissioners of natural resources, 59.26 revenue, the pollution control agency, and the iron range 59.27 resources and rehabilitation board; and 59.28 (5) no state investment will be made without thorough 59.29 review, including independent professional analysis as needed, 59.30 of all financial aspects of the investment. 59.31 Sec. 48. [MEMBERSHIP AGREEMENT.] 59.32 The commissioner shall request the executive board of the 59.33 World Trade Centers Association to transfer the membership of 59.34 the Minnesota world trade center corporation in the World Trade 59.35 Centers Association to the department of trade and economic 59.36 development, Minnesota trade office. 60.1 Sec. 49. [TRANSFERS.] 60.2 All of the rights and obligations of the Minnesota world 60.3 trade center corporation under the development agreement and all 60.4 existing contracts related to the approximately 20,000 square 60.5 feet to which the world trade center corporation is a party or 60.6 beneficiary is transferred to the state of Minnesota, department 60.7 of trade and economic development, Minnesota trade office. All 60.8 other property of the world trade center corporation is 60.9 transferred and appropriated to the commissioner per Minnesota 60.10 Statutes 1998, section 15.039. 60.11 Sec. 50. [TRANSFER OF POSITIONS AND EMPLOYEES.] 60.12 All positions and employees of the world trade conference 60.13 center are transferred to the executive branch of the state 60.14 government under the department of trade and economic 60.15 development on July 1, 1999, under the following conditions. 60.16 The commissioner of employee relations will determine which 60.17 positions are to be placed in the classified service and which 60.18 are placed in the unclassified service of the state in 60.19 accordance with appropriate provisions of Minnesota Statutes, 60.20 chapter 43A. The commissioner will allocate positions to 60.21 appropriate classes in the state classification plan. Positions 60.22 transferred with their incumbents do not create vacancies in 60.23 state service. 60.24 Employees transferred to unlimited classified positions are 60.25 transferred to state service without examinations. Those 60.26 transferred to positions in the managerial plan pursuant to 60.27 Minnesota Statutes, section 43A.18, subdivision 3, who have 60.28 completed 12 months of service in their position and all others 60.29 who have completed six months of service in their positions are 60.30 transferred with permanent status. Employees transferred to 60.31 managerial positions with less than 12 months of service in 60.32 their positions are transferred with probationary status. 60.33 However, all time spent by these employees in the positions must 60.34 be credited toward meeting the probationary period requirement 60.35 of the contract or plan governing the classification to which 60.36 their positions have been assigned. 61.1 Employees transferred to limited classified positions or to 61.2 temporary unclassified positions shall receive emergency, 61.3 temporary, or temporary unclassified appointments under 61.4 provisions of Minnesota Statutes, section 43A.15, subdivisions 2 61.5 and 3, or Minnesota Statutes, section 43A.08, subdivision 2a, as 61.6 appropriate. 61.7 The appointing authority and incumbent employees of 61.8 unlimited positions whose positions have been assigned by the 61.9 department of employee relations to classes in the state 61.10 classification plan shall have access to the provisions of 61.11 Minnesota Statutes, section 43A.07, subdivision 3, regarding 61.12 protested allocation of their positions effective July 1, 1999, 61.13 and for 30 days thereafter. 61.14 Sec. 51. [SPENDING APPROVED.] 61.15 Requests to spend federal funds from the commissioners of 61.16 economic security, trade and economic development, and public 61.17 service for which further review was requested under Minnesota 61.18 Statutes, section 3.3005, subdivision 2a, in February 1999, are 61.19 approved for the purposes indicated in the requests. 61.20 Sec. 52. [REPEALER.] 61.21 (a) Minnesota Statutes 1998, sections 44A.001; 44A.01; 61.22 44A.02; 44A.023; 44A.025; 44A.031; 44A.0311; 44A.06; 44A.08; and 61.23 44A.11, are repealed. 61.24 (b) Minnesota Statutes 1998, sections 138A.01; 138A.02; 61.25 138A.03; 138A.04; 138A.05; 138A.06; 462A.28; 469.305; 469.306; 61.26 469.307; 469.308; and 469.31, are repealed. 61.27 (c) Minnesota Statutes 1998, sections 341.01; 341.02; 61.28 341.04; 341.045; 341.05; 341.06; 341.07; 341.08; 341.09; 341.10; 61.29 341.11; 341.115; 341.12; 341.13; and 341.15, are repealed. 61.30 (d) Laws 1998, chapter 404, section 13, subdivision 5, is 61.31 repealed. 61.32 Sec. 53. [EFFECTIVE DATES.] 61.33 Section 45 is effective the day following final enactment. 61.34 Sections 49 is effective June 30, 1999. 61.35 Section 52, paragraph (a), is effective July 1, 1999. 61.36 Section 52, paragraph (b), is effective July 1, 1999. 62.1 Section 52, paragraph (c), is effective June 30, 2000. 62.2 Section 52, paragraph (d), is effective the day following 62.3 final enactment. 62.4 ARTICLE 3 62.5 HEALTH MAINTENANCE ORGANIZATIONS 62.6 Section 1. Minnesota Statutes 1998, section 62D.01, 62.7 subdivision 2, is amended to read: 62.8 Subd. 2. (a) Faced with the continuation of mounting costs 62.9 of health care coupled with its inaccessibility to large 62.10 segments of the population, the legislature has determined that 62.11 there is a need to explore alternative methods for the delivery 62.12 of health care services, with a view toward achieving greater 62.13 efficiency and economy in providing these services. 62.14 (b) It is, therefore, the policy of the state to eliminate 62.15 the barriers to the organization, promotion, and expansion of 62.16 health maintenance organizations; to provide for their 62.17 regulation by the state commissioner ofhealthcommerce and the 62.18 state commissioner of health; and to exempt them from the 62.19 operation of the insurance and nonprofit health service plan 62.20 corporation laws of the state except as hereinafter provided. 62.21 (c) It is further the intention of the legislature to 62.22 closely monitor the development of health maintenance 62.23 organizations in order to assess their impact on the costs of 62.24 health care to consumers, the accessibility of health care to 62.25 consumers, and the quality of health care provided to consumers. 62.26 Sec. 2. Minnesota Statutes 1998, section 62D.02, 62.27 subdivision 3, is amended to read: 62.28 Subd. 3. "Commissioner ofhealthcommerce" or 62.29 "commissioner" means the state commissioner ofhealthcommerce 62.30 or a designee. 62.31 Sec. 3. Minnesota Statutes 1998, section 62D.02, is 62.32 amended by adding a subdivision to read: 62.33 Subd. 17. [QUALITY OF CARE.] "Quality of care" means the 62.34 degree to which health services for individuals and populations 62.35 are consistent with current professional knowledge and accepted 62.36 standards for: 63.1 (1) availability and access to provider network and care 63.2 management systems; 63.3 (2) provider credentialing and monitoring procedures and 63.4 needs of the community and individuals served; 63.5 (3) process for appropriate, effective, patient-centered 63.6 care delivery consistent with accepted practice parameters; and 63.7 (4) patient satisfaction and increased likelihood of 63.8 desired clinical and functional outcomes. 63.9 Sec. 4. Minnesota Statutes 1998, section 62D.03, 63.10 subdivision 1, is amended to read: 63.11 Subdivision 1. Notwithstanding any law of this state to 63.12 the contrary, any nonprofit corporation organized to do so or a 63.13 local governmental unit may apply to the commissionerof health63.14 for a certificate of authority to establish and operate a health 63.15 maintenance organization in compliance with sections 62D.01 to 63.16 62D.30. No person shall establish or operate a health 63.17 maintenance organization in this state, nor sell or offer to 63.18 sell, or solicit offers to purchase or receive advance or 63.19 periodic consideration in conjunction with a health maintenance 63.20 organization or health maintenance contract unless the 63.21 organization has a certificate of authority under sections 63.22 62D.01 to 62D.30. 63.23 Sec. 5. Minnesota Statutes 1998, section 62D.03, 63.24 subdivision 3, is amended to read: 63.25 Subd. 3. The commissioner or commissioner of health may 63.26 require any person providing physician and hospital services 63.27 with payments made in the manner set forth in section 62D.02, 63.28 subdivision 4, to apply for a certificate of authority under 63.29 sections 62D.01 to 62D.30. An applicant may continue to operate 63.30 until the commissionerof healthacts upon the application. In 63.31 the event that an application is denied, the applicant shall 63.32 henceforth be treated as a health maintenance organization whose 63.33 certificate of authority has been revoked. Any person directed 63.34 to apply for a certificate of authority shall be subject to the 63.35 provisions of this subdivision. 63.36 Sec. 6. Minnesota Statutes 1998, section 62D.03, 64.1 subdivision 4, is amended to read: 64.2 Subd. 4. Each application for a certificate of authority 64.3 shall be verified by an officer or authorized representative of 64.4 the applicant, and shall be in a form prescribed by the 64.5 commissionerof health. Each application shall include the 64.6 following: 64.7 (a) a copy of the basic organizational document, if any, of 64.8 the applicant and of each major participating entity; such as 64.9 the articles of incorporation, or other applicable documents, 64.10 and all amendments thereto; 64.11 (b) a copy of the bylaws, rules and regulations, or similar 64.12 document, if any, and all amendments thereto which regulate the 64.13 conduct of the affairs of the applicant and of each major 64.14 participating entity; 64.15 (c) a list of the names, addresses, and official positions 64.16 of the following: 64.17 (1) all members of the board of directors, or governing 64.18 body of the local government unit, and the principal officers 64.19 and shareholders of the applicant organization; and 64.20 (2) all members of the board of directors, or governing 64.21 body of the local government unit, and the principal officers of 64.22 the major participating entity and each shareholder beneficially 64.23 owning more than ten percent of any voting stock of the major 64.24 participating entity; 64.25 The commissioner may by rule identify persons included in 64.26 the term "principal officers"; 64.27 (d) a full disclosure of the extent and nature of any 64.28 contract or financial arrangements between the following: 64.29 (1) the health maintenance organization and the persons 64.30 listed in clause (c)(1); 64.31 (2) the health maintenance organization and the persons 64.32 listed in clause (c)(2); 64.33 (3) each major participating entity and the persons listed 64.34 in clause (c)(1) concerning any financial relationship with the 64.35 health maintenance organization; and 64.36 (4) each major participating entity and the persons listed 65.1 in clause (c)(2) concerning any financial relationship with the 65.2 health maintenance organization; 65.3 (e) the name and address of each participating entity and 65.4 the agreed upon duration of each contract or agreement; 65.5 (f) a copy of the form of each contract binding the 65.6 participating entities and the health maintenance organization. 65.7 Contractual provisions shall be consistent with the purposes of 65.8 sections 62D.01 to 62D.30, in regard to the services to be 65.9 performed under the contract, the manner in which payment for 65.10 services is determined, the nature and extent of 65.11 responsibilities to be retained by the health maintenance 65.12 organization, the nature and extent of risk sharing permissible, 65.13 and contractual termination provisions; 65.14 (g) a copy of each contract binding major participating 65.15 entities and the health maintenance organization. Contract 65.16 information filed with the commissioner shall be confidential 65.17 and subject to the provisions of section 13.37, subdivision 1, 65.18 clause (b), upon the request of the health maintenance 65.19 organization. 65.20 Upon initial filing of each contract, the health 65.21 maintenance organization shall file a separate document 65.22 detailing the projected annual expenses to the major 65.23 participating entity in performing the contract and the 65.24 projected annual revenues received by the entity from the health 65.25 maintenance organization for such performance. The commissioner 65.26 shall disapprove any contract with a major participating entity 65.27 if the contract will result in an unreasonable expense under 65.28 section 62D.19. The commissioner shall approve or disapprove a 65.29 contract within 30 days of filing. 65.30 Within 120 days of the anniversary of the implementation of 65.31 each contract, the health maintenance organization shall file a 65.32 document detailing the actual expenses incurred and reported by 65.33 the major participating entity in performing the contract in the 65.34 preceding year and the actual revenues received from the health 65.35 maintenance organization by the entity in payment for the 65.36 performance; 66.1 (h) a statement generally describing the health maintenance 66.2 organization, its health maintenance contracts and separate 66.3 health service contracts, facilities, and personnel, including a 66.4 statement describing the manner in which the applicant proposes 66.5 to provide enrollees with comprehensive health maintenance 66.6 services and separate health services; 66.7 (i) a copy of the form of each evidence of coverage to be 66.8 issued to the enrollees; 66.9 (j) a copy of the form of each individual or group health 66.10 maintenance contract and each separate health service contract 66.11 which is to be issued to enrollees or their representatives; 66.12 (k) financial statements showing the applicant's assets, 66.13 liabilities, and sources of financial support. If the 66.14 applicant's financial affairs are audited by independent 66.15 certified public accountants, a copy of the applicant's most 66.16 recent certified financial statement may be deemed to satisfy 66.17 this requirement; 66.18 (l) a description of the proposed method of marketing the 66.19 plan, a schedule of proposed charges, and a financial plan which 66.20 includes a three-year projection of the expenses and income and 66.21 other sources of future capital; 66.22 (m) a statement reasonably describing the geographic area 66.23 or areas to be served and the type or types of enrollees to be 66.24 served; 66.25 (n) a description of the complaint procedures to be 66.26 utilized as required under section 62D.11; 66.27 (o) a description of the procedures and programs to be 66.28 implemented to meet the requirements of section 62D.04, 66.29subdivision 1, clauses (b) and (c)subdivision 1a, paragraph 66.30 (a), clauses (1) and (2), and to monitor the quality of health 66.31 care provided to enrollees; 66.32 (p) a description of the mechanism by which enrollees will 66.33 be afforded an opportunity to participate in matters of policy 66.34 and operation under section 62D.06; 66.35 (q) a copy of any agreement between the health maintenance 66.36 organization and an insurer or nonprofit health service 67.1 corporation regarding reinsurance, stop-loss coverage, 67.2 insolvency coverage, or any other type of coverage for potential 67.3 costs of health services, as authorized in sections 62D.04, 67.4 subdivision 1, clause (f), 62D.05, subdivision 3, and 62D.13; 67.5 (r) a copy of the conflict of interest policy which applies 67.6 to all members of the board of directors and the principal 67.7 officers of the health maintenance organization, as described in 67.8 section 62D.04, subdivision 1, paragraph (g). All currently67.9licensed health maintenance organizations shall also file a67.10conflict of interest policy with the commissioner within 60 days67.11after August 1, 1990, or at a later date if approved by the67.12commissioner; 67.13 (s) a copy of the statement that describes the health 67.14 maintenance organization's prior authorization administrative 67.15 procedures; 67.16 (t) a copy of the agreement between the guaranteeing 67.17 organization and the health maintenance organization, as 67.18 described in section 62D.043, subdivision 6; and 67.19 (u) other information as the commissionerof healthmay 67.20 reasonably require to be provided. 67.21 Sec. 7. Minnesota Statutes 1998, section 62D.04, 67.22 subdivision 1, is amended to read: 67.23 Subdivision 1. Upon receipt of an application for a 67.24 certificate of authority, the commissionerof healthshall 67.25 determine whether the applicant for a certificate of authority 67.26 has: 67.27(a) demonstrated the willingness and potential ability to67.28assure that health care services will be provided in such a67.29manner as to enhance and assure both the availability and67.30accessibility of adequate personnel and facilities;67.31(b) arrangements for an ongoing evaluation of the quality67.32of health care;67.33(c) a procedure to develop, compile, evaluate, and report67.34statistics relating to the cost of its operations, the pattern67.35of utilization of its services, the quality, availability and67.36accessibility of its services, and such other matters as may be68.1reasonably required by regulation of the commissioner of health;68.2(d) reasonable provisions for emergency and out of area68.3health care services;68.4(e)(a) demonstrated that it is financially responsible and 68.5 may reasonably be expected to meet its obligations to enrollees 68.6 and prospective enrollees. In making this determination, the 68.7 commissionerof healthshall require the amounts of net worth 68.8 and working capital required in section 62D.042, the deposit 68.9 required in section 62D.041, and in addition shall consider: 68.10 (1) the financial soundness of its arrangements for health 68.11 care services and the proposed schedule of charges used in 68.12 connection therewith; 68.13 (2) arrangements which will guarantee for a reasonable 68.14 period of time the continued availability or payment of the cost 68.15 of health care services in the event of discontinuance of the 68.16 health maintenance organization; and 68.17 (3) agreements with providers for the provision of health 68.18 care services; 68.19(f)(b) demonstrated that it will assume full financial 68.20 risk on a prospective basis for the provision of comprehensive 68.21 health maintenance services, including hospital care; provided, 68.22 however, that the requirement in this paragraph shall not 68.23 prohibit the following: 68.24 (1) a health maintenance organization from obtaining 68.25 insurance or making other arrangements (i) for the cost of 68.26 providing to any enrollee comprehensive health maintenance 68.27 services, the aggregate value of which exceeds $5,000 in any 68.28 year, (ii) for the cost of providing comprehensive health care 68.29 services to its members on a nonelective emergency basis, or 68.30 while they are outside the area served by the organization, or 68.31 (iii) for not more than 95 percent of the amount by which the 68.32 health maintenance organization's costs for any of its fiscal 68.33 years exceed 105 percent of its income for such fiscal years; 68.34 and 68.35 (2) a health maintenance organization from having a 68.36 provision in a group health maintenance contract allowing an 69.1 adjustment of premiums paid based upon the actual health 69.2 services utilization of the enrollees covered under the 69.3 contract, except that at no time during the life of the contract 69.4 shall the contract holder fully self-insure the financial risk 69.5 of health care services delivered under the contract. Risk 69.6 sharing arrangements shall be subject to the requirements of 69.7 sections 62D.01 to 62D.30; 69.8(g)(c) demonstrated that it has made provisions for and 69.9 adopted a conflict of interest policy applicable to all members 69.10 of the board of directors and the principal officers of the 69.11 health maintenance organization. The conflict of interest 69.12 policy shall include the procedures described in section 69.13 317A.255, subdivisions 1 and 2. However, the commissioner is 69.14 not precluded from finding that a particular transaction is an 69.15 unreasonable expense as described in section 62D.19 even if the 69.16 directors follow the required procedures; and 69.17(h)(d) otherwise met the requirements of sections 62D.01 69.18 to 62D.30. 69.19 Sec. 8. Minnesota Statutes 1998, section 62D.04, is 69.20 amended by adding a subdivision to read: 69.21 Subd. 1a. [REVIEW BY COMMISSIONER OF HEALTH.] (a) Upon 69.22 receipt of an application for a certificate of authority, the 69.23 commissioner shall request that the commissioner of health 69.24 certify whether the applicant has: 69.25 (1) demonstrated the willingness and potential ability to 69.26 assure that health care services will be provided in such a 69.27 manner so as to enhance and assure both the availability and 69.28 accessibility of adequate personnel and facilities; 69.29 (2) arrangements for an ongoing evaluation of the quality 69.30 of health care; 69.31 (3) a procedure to develop, compile, evaluate, and report 69.32 statistics relating to the cost of its operations, the pattern 69.33 of utilization of its services, the quality, availability and 69.34 accessibility of its services, and such other matters as may be 69.35 reasonably required by rule of the commissioner; and 69.36 (4) reasonable provisions for emergency and out-of-area 70.1 health care services. 70.2 (b) The commissioner of health shall provide the 70.3 certification, or notification that certification is not 70.4 forthcoming, to the commissioner within the time period 70.5 specified in subdivision 2. 70.6 Sec. 9. Minnesota Statutes 1998, section 62D.04, 70.7 subdivision 2, is amended to read: 70.8 Subd. 2. Within 90 days after the receipt of the 70.9 application for a certificate of authority, the commissionerof70.10healthshall determine whether or not the applicant meets the 70.11 requirements of this section. If the commissionerof health70.12 determines that the applicant meets the requirements of sections 70.13 62D.01 to 62D.30, the commissioner shall issue a certificate of 70.14 authority to the applicant. The commissioner shall not issue a 70.15 certificate without the certification by the commissioner of 70.16 health required by subdivision 1a. If the commissionerof70.17healthdetermines that the applicant is not qualified, the 70.18 commissioner shall so notify the applicant and shall specify the 70.19 reason or reasons for such disqualification. 70.20 Sec. 10. Minnesota Statutes 1998, section 62D.04, 70.21 subdivision 4, is amended to read: 70.22 Subd. 4. [CONTINUED COMPLIANCE.] Upon being granted a 70.23 certificate of authority to operate as a health maintenance 70.24 organization, the organization must continue to operate in 70.25 compliance with the standards set forth insubdivision 170.26 subdivisions 1 and 1a. Noncompliance may result in the 70.27 imposition of a fine or the suspension or revocation of the 70.28 certificate of authority, in accordance with sections 62D.15 to 70.29 62D.17. The commissioner of health shall inform the 70.30 commissioner of any failure to comply with subdivision 1a. 70.31 Sec. 11. Minnesota Statutes 1998, section 62D.05, 70.32 subdivision 6, is amended to read: 70.33 Subd. 6. [SUPPLEMENTAL BENEFITS.] (a) A health maintenance 70.34 organization may, as a supplemental benefit, provide coverage to 70.35 its enrollees for health care services and supplies received 70.36 from providers who are not employed by, under contract with, or 71.1 otherwise affiliated with the health maintenance organization. 71.2 Supplemental benefits may be provided if the following 71.3 conditions are met: 71.4 (1) a health maintenance organization desiring to offer 71.5 supplemental benefits must at all times comply with the 71.6 requirements of sections 62D.041 and 62D.042; 71.7 (2) a health maintenance organization offering supplemental 71.8 benefits must maintain an additional surplus in the first year 71.9 supplemental benefits are offered equal to the lesser of 71.10 $500,000 or 33 percent of the supplemental benefit expenses. At 71.11 the end of the second year supplemental benefits are offered, 71.12 the health maintenance organization must maintain an additional 71.13 surplus equal to the lesser of $1,000,000 or 33 percent of the 71.14 supplemental benefit expenses. At the end of the third year 71.15 benefits are offered and every year after that, the health 71.16 maintenance organization must maintain an additional surplus 71.17 equal to the greater of $1,000,000 or 33 percent of the 71.18 supplemental benefit expenses. When in the judgment of the 71.19 commissioner the health maintenance organization's surplus is 71.20 inadequate, the commissioner may require the health maintenance 71.21 organization to maintain additional surplus; 71.22 (3) claims relating to supplemental benefits must be 71.23 processed in accordance with the requirements of section 71.24 72A.201; and 71.25 (4) in marketing supplemental benefits, the health 71.26 maintenance organization shall fully disclose and describe to 71.27 enrollees and potential enrollees the nature and extent of the 71.28 supplemental coverage, and any claims filing and other 71.29 administrative responsibilities in regard to supplemental 71.30 benefits. 71.31 (b) The commissioner may, pursuant to chapter 14, adopt, 71.32 enforce, and administer rules relating to this subdivision, 71.33 including: rules insuring that these benefits are supplementary 71.34 and not substitutes for comprehensive health maintenance 71.35 services by addressing percentage of out-of-plan coverage; rules 71.36 relating to the establishment of necessary financial reserves; 72.1 rules relating to marketing practices; and other rules necessary 72.2 for the effective and efficient administration of this 72.3 subdivision. The commissioner, in adopting rules, shall give 72.4 consideration to existing laws and rules administered and 72.5 enforced by thedepartment of commercecommissioner relating to 72.6 health insurance plans. 72.7 Sec. 12. Minnesota Statutes 1998, section 62D.06, 72.8 subdivision 2, is amended to read: 72.9 Subd. 2. The governing body shall establish a mechanism to 72.10 afford the enrollees an opportunity to express their opinions in 72.11 matters of policy and operation through the establishment of 72.12 advisory panels, by the use of advisory referenda on major 72.13 policy decisions, or through the use of other mechanisms as may 72.14 be prescribed or permitted by the commissionerof health. 72.15 Sec. 13. Minnesota Statutes 1998, section 62D.07, 72.16 subdivision 2, is amended to read: 72.17 Subd. 2. No evidence of coverage or contract, or amendment 72.18 thereto shall be issued or delivered to any person in this state 72.19 until a copy of the form of the evidence of coverage or contract 72.20 or amendment thereto has been filed with the commissionerof72.21healthpursuant to section 62D.03 or 62D.08. 72.22 Sec. 14. Minnesota Statutes 1998, section 62D.07, 72.23 subdivision 3, is amended to read: 72.24 Subd. 3. Contracts and evidences of coverage shall contain: 72.25 (a) No provisions or statements which are unjust, unfair, 72.26 inequitable, misleading, deceptive, or which are untrue, 72.27 misleading, or deceptive as defined in section 62D.12, 72.28 subdivision 1; 72.29 (b) A clear, concise and complete statement of: 72.30 (1) the health care services and the insurance or other 72.31 benefits, if any, to which the enrollee is entitled under the 72.32 health maintenance contract; 72.33 (2) any exclusions or limitations on the services, kind of 72.34 services, benefits, or kind of benefits, to be provided, 72.35 including any deductible or copayment feature and requirements 72.36 for referrals, prior authorizations, and second opinions; 73.1 (3) where and in what manner information is available as to 73.2 how services, including emergency and out of area services, may 73.3 be obtained; 73.4 (4) the total amount of payment and copayment, if any, for 73.5 health care services and the indemnity or service benefits, if 73.6 any, which the enrollee is obligated to pay with respect to 73.7 individual contracts, or an indication whether the plan is 73.8 contributory or noncontributory with respect to group 73.9 certificates; and 73.10 (5) a description of the health maintenance organization's 73.11 method for resolving enrollee complaints and a statement 73.12 identifying the commissioner as an external source with whom 73.13 complaints may be registered; and 73.14 (c) On the cover page of the evidence of coverage and 73.15 contract, a clear and complete statement of enrollees' rights. 73.16 The statement must be in bold print and captioned "Important 73.17 Enrollee Information and Enrollee Bill of Rights" and must 73.18 include but not be limited to the following provisions in the 73.19 following language or in substantially similar language approved 73.20 in advance by the commissioner, except that paragraph (8) does 73.21 not apply to prepaid health plans providing coverage for 73.22 programs administered by the commissioner of human services: 73.23 ENROLLEE INFORMATION 73.24 (1) COVERED SERVICES: Services provided by (name of health 73.25 maintenance organization) will be covered only if services are 73.26 provided by participating (name of health maintenance 73.27 organization) providers or authorized by (name of health 73.28 maintenance organization). Your contract fully defines what 73.29 services are covered and describes procedures you must follow to 73.30 obtain coverage. 73.31 (2) PROVIDERS: Enrolling in (name of health maintenance 73.32 organization) does not guarantee services by a particular 73.33 provider on the list of providers. When a provider is no longer 73.34 part of (name of health maintenance organization), you must 73.35 choose among remaining (name of the health maintenance 73.36 organization) providers. 74.1 (3) REFERRALS: Certain services are covered only upon 74.2 referral. See section (section number) of your contract for 74.3 referral requirements. All referrals to non-(name of health 74.4 maintenance organization) providers and certain types of health 74.5 care providers must be authorized by (name of health maintenance 74.6 organization). 74.7 (4) EMERGENCY SERVICES: Emergency services from providers 74.8 who are not affiliated with (name of health maintenance 74.9 organization) will be covered only if proper procedures are 74.10 followed. Your contract explains the procedures and benefits 74.11 associated with emergency care from (name of health maintenance 74.12 organization) and non-(name of health maintenance organization) 74.13 providers. 74.14 (5) EXCLUSIONS: Certain services or medical supplies are 74.15 not covered. You should read the contract for a detailed 74.16 explanation of all exclusions. 74.17 (6) CONTINUATION: You may convert to an individual health 74.18 maintenance organization contract or continue coverage under 74.19 certain circumstances. These continuation and conversion rights 74.20 are explained fully in your contract. 74.21 (7) CANCELLATION: Your coverage may be canceled by you or 74.22 (name of health maintenance organization) only under certain 74.23 conditions. Your contract describes all reasons for 74.24 cancellation of coverage. 74.25 (8) NEWBORN COVERAGE: If your health plan provides for 74.26 dependent coverage, a newborn infant is covered from birth, but 74.27 only if services are provided by participating (name of health 74.28 maintenance organization) providers or authorized by (name of 74.29 health maintenance organization). Certain services are covered 74.30 only upon referral. (Name of health maintenance organization) 74.31 will not automatically know of the infant's birth or that you 74.32 would like coverage under your plan. You should notify (name of 74.33 health maintenance organization) of the infant's birth and that 74.34 you would like coverage. If your contract requires an 74.35 additional premium for each dependent, (name of health 74.36 maintenance organization) is entitled to all premiums due from 75.1 the time of the infant's birth until the time you notify (name 75.2 of health maintenance organization) of the birth. (Name of 75.3 health maintenance organization) may withhold payment of any 75.4 health benefits for the newborn infant until any premiums you 75.5 owe are paid. 75.6 (9) PRESCRIPTION DRUGS AND MEDICAL EQUIPMENT: Enrolling in 75.7 (name of health maintenance organization) does not guarantee 75.8 that any particular prescription drug will be available nor that 75.9 any particular piece of medical equipment will be available, 75.10 even if the drug or equipment is available at the start of the 75.11 contract year. 75.12 ENROLLEE BILL OF RIGHTS 75.13 (1) Enrollees have the right to available and accessible 75.14 services including emergency services, as defined in your 75.15 contract, 24 hours a day and seven days a week; 75.16 (2) Enrollees have the right to be informed of health 75.17 problems, and to receive information regarding treatment 75.18 alternatives and risks which is sufficient to assure informed 75.19 choice; 75.20 (3) Enrollees have the right to refuse treatment, and the 75.21 right to privacy of medical and financial records maintained by 75.22 the health maintenance organization and its health care 75.23 providers, in accordance with existing law; 75.24 (4) Enrollees have the right to file a complaint with the 75.25 health maintenance organization and the commissioner ofhealth75.26 commerce and the right to initiate a legal proceeding when 75.27 experiencing a problem with the health maintenance organization 75.28 or its health care providers; 75.29 (5) Enrollees have the right to a grace period of 31 days 75.30 for the payment of each premium for an individual health 75.31 maintenance contract falling due after the first premium during 75.32 which period the contract shall continue in force; 75.33 (6) Medicare enrollees have the right to voluntarily 75.34 disenroll from the health maintenance organization and the right 75.35 not to be requested or encouraged to disenroll except in 75.36 circumstances specified in federal law; and 76.1 (7) Medicare enrollees have the right to a clear 76.2 description of nursing home and home care benefits covered by 76.3 the health maintenance organization. 76.4 Sec. 15. Minnesota Statutes 1998, section 62D.07, 76.5 subdivision 10, is amended to read: 76.6 Subd. 10. An individual health maintenance organization 76.7 contract and an evidence of coverage must contain a department 76.8 ofhealthcommerce telephone number that the enrollee can call 76.9 to register a complaint about a health maintenance organization. 76.10 Sec. 16. Minnesota Statutes 1998, section 62D.08, 76.11 subdivision 1, is amended to read: 76.12 Subdivision 1. A health maintenance organization shall, 76.13 unless otherwise provided for by rules adopted by the 76.14 commissionerof health, file notice with the commissionerof76.15healthprior to any modification of the operations or documents 76.16 described in the information submitted under clauses (a), (b), 76.17 (e), (f), (g), (i), (j), (l), (m), (n), (o), (p), (q), (r), (s), 76.18 and (t) of section 62D.03, subdivision 4. If the modification 76.19 involves the operations or documents described in the 76.20 information submitted under section 62D.03, subdivision 4, 76.21 clause (o), the notice of modification must be filed with the 76.22 commissioner of health at the same time it is filed with the 76.23 commissioner. The commissioner of health shall provide the 76.24 commissioner with a recommendation on the approval or 76.25 disapproval of the modifications within 60 days of the filing. 76.26 If the commissionerof healthdoes not disapprove of the filing 76.27 within 60 days, it shall be deemed approved and may be 76.28 implemented by the health maintenance organization. 76.29 Sec. 17. Minnesota Statutes 1998, section 62D.08, 76.30 subdivision 2, is amended to read: 76.31 Subd. 2. Every health maintenance organization shall 76.32 annually, on or before April 1, file a verified report with the 76.33 commissionerof healthand with the commissioner of health, 76.34 covering the preceding calendar year. However, utilization data 76.35 required under subdivision 3, clause (c), shall be filed on or 76.36 before July 1. 77.1 Sec. 18. Minnesota Statutes 1998, section 62D.08, 77.2 subdivision 3, is amended to read: 77.3 Subd. 3. Such report shall be on forms prescribed by the 77.4 commissionerof health, and shall include: 77.5 (a) A financial statement of the organization, including 77.6 its balance sheet and receipts and disbursements for the 77.7 preceding year certified by an independent certified public 77.8 accountant, reflecting at least (1) all prepayment and other 77.9 payments received for health care services rendered, (2) 77.10 expenditures to all providers, by classes or groups of 77.11 providers, and insurance companies or nonprofit health service 77.12 plan corporations engaged to fulfill obligations arising out of 77.13 the health maintenance contract, (3) expenditures for capital 77.14 improvements, or additions thereto, including but not limited to 77.15 construction, renovation or purchase of facilities and capital 77.16 equipment, and (4) a supplementary statement of assets, 77.17 liabilities, premium revenue, and expenditures for risk sharing 77.18 business under section 62D.04, subdivision 1, on forms 77.19 prescribed by the commissioner; 77.20 (b) The number of new enrollees enrolled during the year, 77.21 the number of group enrollees and the number of individual 77.22 enrollees as of the end of the year and the number of enrollees 77.23 terminated during the year; 77.24 (c) A summary of information compiled pursuant to section 77.25 62D.04,subdivision 1, clause (c)subdivision 1a, paragraph (a), 77.26 clause (3), in such form as may be required by the 77.27 commissionerof health; 77.28 (d) A report of the names and addresses of all persons set 77.29 forth in section 62D.03, subdivision 4, clause (c), who were 77.30 associated with the health maintenance organization or the major 77.31 participating entity during the preceding year, and the amount 77.32 of wages, expense reimbursements, or other payments to such 77.33 individuals for services to the health maintenance organization 77.34 or the major participating entity, as those services relate to 77.35 the health maintenance organization, including a full disclosure 77.36 of all financial arrangements during the preceding year required 78.1 to be disclosed pursuant to section 62D.03, subdivision 4, 78.2 clause (d); 78.3 (e) A separate report addressing health maintenance 78.4 contracts sold to individuals covered by Medicare, title XVIII 78.5 of the Social Security Act, as amended, including the 78.6 information required under section 62D.30, subdivision 6; and 78.7 (f) Such other information relating to the performance of 78.8 the health maintenance organization as is reasonably necessary 78.9 to enable the commissionerof healthto carry out the duties 78.10 under sections 62D.01 to 62D.30. 78.11 Sec. 19. Minnesota Statutes 1998, section 62D.08, 78.12 subdivision 4, is amended to read: 78.13 Subd. 4. Any health maintenance organization which fails 78.14 to file a verified report with the commissioner and with the 78.15 commissioner of health on or before April 1 of the year due 78.16 shall be subject to the levy of a fine up to $500 for each day 78.17 the report is past due. This failure will serve as a basis for 78.18 other disciplinary action against the organization, including 78.19 suspension or revocation, in accordance with sections 62D.15 to 78.20 62D.17 and chapter 45. The commissioner may grant an extension 78.21 of the reporting deadline upon good cause shown by the health 78.22 maintenance organization. Any fine levied or disciplinary 78.23 action taken against the organization under this subdivision is 78.24 subject to the contested case and judicial review provisions of 78.25 sections 14.57 to 14.69. 78.26 Sec. 20. Minnesota Statutes 1998, section 62D.08, 78.27 subdivision 5, is amended to read: 78.28 Subd. 5. Every health maintenance organization shall 78.29 inform the commissioner of any change in the information 78.30 described in section 62D.03, subdivision 4, clause (e), 78.31 including any change in address, any modification of the 78.32 duration of any contract or agreement, and any addition to the 78.33 list of participating entities, within ten working days of the 78.34 notification of the change. Any cancellation or discontinuance 78.35 of any contract or agreement listed in section 62D.03, 78.36 subdivision 4, clause (e), or listed subsequently in accordance 79.1 with this subdivision, shall be reported to the commissioner 120 79.2 days before the effective date. When the health maintenance 79.3 organization terminates a provider for cause, death, disability, 79.4 or loss of license, the health maintenance organization must 79.5 notify the commissioner within three working days of the date 79.6 the health maintenance organization sends out or receives the 79.7 notice of cancellation, discontinuance, or termination. Any 79.8 health maintenance organization which fails to notify the 79.9 commissioner within the time periods prescribed in this 79.10 subdivision shall be subject to the levy of a fine up to $200 79.11 per contract for each day the notice is past due, accruing up to 79.12 the date the organization notifies the commissioner of the 79.13 cancellation or discontinuance. Any fine levied under this 79.14 subdivision is subject to the contested case and judicial review 79.15 provisions of chapter 14. The levy of a fine does not preclude 79.16 the commissioner from using other penalties described in 79.17 sections 62D.15 to 62D.17 and chapter 45. 79.18 Sec. 21. Minnesota Statutes 1998, section 62D.09, 79.19 subdivision 1, is amended to read: 79.20 Subdivision 1. (a) Any written marketing materials which 79.21 may be directed toward potential enrollees and which include a 79.22 detailed description of benefits provided by the health 79.23 maintenance organization shall include a statement of enrollee 79.24 information and rights as described in section 62D.07, 79.25 subdivision 3, paragraphs (b) and (c). Prior to any oral 79.26 marketing presentation, the agent marketing the plan must inform 79.27 the potential enrollees that any complaints concerning the 79.28 material presented should be directed to the health maintenance 79.29 organization, the commissionerof health, or, if applicable, the 79.30 employer. 79.31 (b) Detailed marketing materials must affirmatively 79.32 disclose all exclusions and limitations in the organization's 79.33 services or kinds of services offered to the contracting party, 79.34 including but not limited to the following types of exclusions 79.35 and limitations: 79.36 (1) health care services not provided; 80.1 (2) health care services requiring copayments or 80.2 deductibles paid by enrollees; 80.3 (3) the fact that access to health care services does not 80.4 guarantee access to a particular provider type; and 80.5 (4) health care services that are or may be provided only 80.6 by referral of a physician. 80.7 (c) No marketing materials may lead consumers to believe 80.8 that all health care needs will be covered. All marketing 80.9 materials must alert consumers to possible uncovered expenses 80.10 with the following language in bold print: "THIS HEALTH CARE 80.11 PLAN MAY NOT COVER ALL YOUR HEALTH CARE EXPENSES; READ YOUR 80.12 CONTRACT CAREFULLY TO DETERMINE WHICH EXPENSES ARE COVERED." 80.13 Immediately following the disclosure required under paragraph 80.14 (b), clause (3), consumers must be given a telephone number to 80.15 use to contact the health maintenance organization for specific 80.16 information about access to provider types. 80.17 (d) The disclosures required in paragraphs (b) and (c) are 80.18 not required on billboards or image, and name identification 80.19 advertisement. 80.20 Sec. 22. Minnesota Statutes 1998, section 62D.09, 80.21 subdivision 8, is amended to read: 80.22 Subd. 8. Each health maintenance organization shall issue 80.23 a membership card to its enrollees. The membership card must: 80.24 (1) identify the health maintenance organization; 80.25 (2) include the name, address, and telephone number to call 80.26 if the enrollee has a complaint; 80.27 (3) include the telephone number to call or the instruction 80.28 on how to receive authorization for emergency care; and 80.29 (4) include one of the following: 80.30 (i) the telephone number to call to appeal to or file a 80.31 complaint with the commissionerof health; or 80.32 (ii) for persons enrolled under section 256B.69, 256D.03, 80.33 or 256L.12, the telephone number to call to file a complaint 80.34 with the ombudsperson designated by the commissioner of human 80.35 services under section 256B.69 and the address to appeal to the 80.36 commissioner of human services. The ombudsperson shall annually 81.1 provide the commissionerof healthwith a summary of complaints 81.2 and actions taken. 81.3 Sec. 23. Minnesota Statutes 1998, section 62D.10, 81.4 subdivision 4, is amended to read: 81.5 Subd. 4. A health plan may apply to the commissionerof81.6healthfor a waiver of the requirements of this section or for 81.7 authorization to impose such underwriting restrictions upon open 81.8 enrollment as are necessary (a) to preserve its financial 81.9 stability, (b) to prevent excessive adverse selection by 81.10 prospective enrollees, or (c) to avoid unreasonably high or 81.11 unmarketable charges for enrollee coverage for health care 81.12 services. The commissionerof healthupon a showing of good 81.13 cause, shall approve or upon failure to show good cause shall 81.14 deny such application within 30 days of the receipt thereof from 81.15 the health plan. The commissionerof healthmay, in accordance 81.16 with chapter 14, promulgate rules to implement this section. 81.17 Sec. 24. Minnesota Statutes 1998, section 62D.11, 81.18 subdivision 1b, is amended to read: 81.19 Subd. 1b. [EXPEDITED RESOLUTION OF COMPLAINTS ABOUT 81.20 MEDICALLY URGENT SERVICES.] In addition to any remedy contained 81.21 in subdivision 1a, when a complaint involves a dispute about a 81.22 health maintenance organization's coverage of a medically urgent 81.23 service, the commissioner or the commissioner of health may also 81.24 order the health maintenance organization to use an expedited 81.25 system to process the complaint. 81.26 Sec. 25. Minnesota Statutes 1998, section 62D.11, 81.27 subdivision 2, is amended to read: 81.28 Subd. 2. The health maintenance organization shall 81.29 maintain a record of each written complaint filed with it for 81.30 five years and the commissionerof healthand the commissioner 81.31 of health shall have access to the records. 81.32 Sec. 26. Minnesota Statutes 1998, section 62D.11, 81.33 subdivision 3, is amended to read: 81.34 Subd. 3. [DENIAL OF COVERAGE.] Within a reasonable time 81.35 after receiving an enrollee's written or oral communication to 81.36 the health maintenance organization concerning a denial of 82.1 coverage or inadequacy of services, the health maintenance 82.2 organization shall provide the enrollee with a written statement 82.3 of the reason for the denial of coverage, and a statement 82.4 approved by the commissionerof healthwhich explains the health 82.5 maintenance organization complaint procedures, and in the case 82.6 of Medicare enrollees, which also explains Medicare appeal 82.7 procedures. 82.8 Sec. 27. Minnesota Statutes 1998, section 62D.11, is 82.9 amended by adding a subdivision to read: 82.10 Subd. 5. [REFERRAL TO COMMISSIONER OF HEALTH.] (a) The 82.11 commissioner shall determine whether a complaint relates 82.12 primarily to quality of care. The commissioner shall refer such 82.13 complaints to the commissioner of health for information, 82.14 recommendation, investigation, or resolution. 82.15 (b) All investigation, examination, rulemaking action, 82.16 penalty assessment, and enforcement authority under this chapter 82.17 is available to the commissioner of health on matters related to 82.18 the quality of care. 82.19 Sec. 28. Minnesota Statutes 1998, section 62D.12, 82.20 subdivision 1, is amended to read: 82.21 Subdivision 1. No health maintenance organization or 82.22 representative thereof may cause or knowingly permit the use of 82.23 advertising or solicitation which is untrue or misleading, or 82.24 any form of evidence of coverage which is deceptive. Each 82.25 health maintenance organization shall be subject to sections 82.26 72A.17 to 72A.32, relating to the regulation of trade practices, 82.27 except(a)to the extent that the nature of a health maintenance 82.28 organization renders such sections clearly inappropriateand (b)82.29that enforcement shall be by the commissioner of health and not82.30by the commissioner of commerce. Every health maintenance 82.31 organization shall be subject to sections 8.31 and 325F.69. 82.32 Sec. 29. Minnesota Statutes 1998, section 62D.12, 82.33 subdivision 2, is amended to read: 82.34 Subd. 2. No health maintenance organization may cancel or 82.35 fail to renew the coverage of an enrollee except for (a) failure 82.36 to pay the charge for health care coverage; (b) termination of 83.1 the health care plan; (c) termination of the group plan; (d) 83.2 enrollee moving out of the area served, subject to section 83.3 62A.17, subdivisions 1 and 6, and section 62D.104; (e) enrollee 83.4 moving out of an eligible group, subject to section 62A.17, 83.5 subdivisions 1 and 6, and section 62D.104; (f) failure to make 83.6 copayments required by the health care plan; or (g) other 83.7 reasons established in rules promulgated by the commissionerof83.8health. 83.9 Sec. 30. Minnesota Statutes 1998, section 62D.12, 83.10 subdivision 9, is amended to read: 83.11 Subd. 9. All net earnings of the health maintenance 83.12 organization shall be devoted to the nonprofit purposes of the 83.13 health maintenance organization in providing comprehensive 83.14 health care. No health maintenance organization shall provide 83.15 for the payment, whether directly or indirectly, of any part of 83.16 its net earnings, to any person as a dividend or rebate; 83.17 provided, however, that health maintenance organizations may 83.18 make payments to providers or other persons based upon the 83.19 efficient provision of services or as incentives to provide 83.20 quality care. The commissionerof healthshall, pursuant to 83.21 sections 62D.01 to 62D.30, revoke the certificate of authority 83.22 of any health maintenance organization in violation of this 83.23 subdivision. 83.24 Sec. 31. Minnesota Statutes 1998, section 62D.121, 83.25 subdivision 3a, is amended to read: 83.26 Subd. 3a. If the replacement coverage is health 83.27 maintenance organization coverage, as explained in subdivisions 83.28 2 and 2a, the fee shall not exceed 125 percent of the cost of 83.29 the average fee charged by health maintenance organizations for 83.30 a similar health plan. The commissionerof health willshall 83.31 determine the average cost of the plan on the basis of 83.32 information provided annually by the health maintenance 83.33 organizations concerning the rates charged by the health 83.34 maintenance organizations for the plans offered. Fees or 83.35 premiums charged under this section must be actuarially 83.36 justified. 84.1 Sec. 32. Minnesota Statutes 1998, section 62D.121, 84.2 subdivision 7, is amended to read: 84.3 Subd. 7. [GEOGRAPHIC ACCESSIBILITY.] If the 84.4 commissioner of health determines that there are not enough 84.5 providers to assure that enrollees have accessible health 84.6 services available in a geographic service area, the 84.7 commissioner of health shall institute a plan of corrective 84.8 action that shall be followed by the health maintenance 84.9 organization. Such a plan may include but not be limited to 84.10 requiring the health maintenance organization to make payments 84.11 to nonparticipating providers for health services for enrollees, 84.12 requiring the health maintenance organization to discontinue 84.13 accepting new enrollees in that service area, and requiring the 84.14 health maintenance organization to reduce its geographic service 84.15 area. If a nonparticipating provider has been a participating 84.16 provider with the health maintenance organization within the 84.17 last year, any payments made under this section must not exceed 84.18 the payment level of the previous contract unless the 84.19 commissioner of health determines that without adjusting 84.20 payments the health maintenance organization will be unable to 84.21 meet the health care needs of enrollees in the area. 84.22 Sec. 33. Minnesota Statutes 1998, section 62D.14, 84.23 subdivision 1, is amended to read: 84.24 Subdivision 1. The commissionerof healthmay make an 84.25 examination of the affairs of any health maintenance 84.26 organization and its contracts, agreements, or other 84.27 arrangements with any participating entity as often as the 84.28 commissionerof healthdeems necessary for the protection of the 84.29 interests of the people of this state, but not less frequently 84.30 than once every three years. Examinations of participating 84.31 entities pursuant to this subdivision shall be limited to their 84.32 dealings with the health maintenance organization and its 84.33 enrollees, except that examinations of major participating 84.34 entities may include inspection of the entity's financial 84.35 statements kept in the ordinary course of business. The 84.36 commissioner may require major participating entities to submit 85.1 the financial statements directly to the commissioner. 85.2 Financial statements of major participating entities are subject 85.3 to the provisions of section 13.37, subdivision 1, clause (b), 85.4 upon request of the major participating entity or the health 85.5 maintenance organization with which it contracts. 85.6 Sec. 34. Minnesota Statutes 1998, section 62D.14, 85.7 subdivision 3, is amended to read: 85.8 Subd. 3. In order to accomplish the duties under this 85.9 section with respect to the dealings of the participating 85.10 entities with the health maintenance organization, the 85.11 commissionerof health shall havehas the right to: 85.12 (a) inspect or otherwise evaluate the quality, 85.13 appropriateness, and timeliness of services performed, or 85.14 arrange with the commissioner of health for the commissioner of 85.15 health to do so; 85.16 (b) audit and inspect any books and records of a health 85.17 maintenance organization and a participating entity which 85.18 pertain to services performed and determinations of amounts 85.19 payable under such contract; 85.20 (c) require persons or organizations under examination to 85.21 be deposed and to answer interrogatories, regardless of whether 85.22 an administrative hearing or other civil proceeding has been or 85.23 will be initiated; and 85.24 (d) employ site visits, public hearings, or any other 85.25 procedures considered appropriate to obtain the information 85.26 necessary to determine the issues. 85.27 Sec. 35. Minnesota Statutes 1998, section 62D.14, 85.28 subdivision 4, is amended to read: 85.29 Subd. 4. Any data or information pertaining to the 85.30 diagnosis, treatment, or health of any enrollee, or any 85.31 application obtained from any person, shall be private as 85.32 defined in chapter 13 and shall not be disclosed to any person 85.33 except (a) to the extent necessary to carry out the purposes of 85.34 sections 62D.01 to 62D.30, the commissioner and the commissioner 85.35 of health and a designee shall have access to the above data or 85.36 information but the data removed from the health maintenance 86.1 organization or participating entity shall not identify any 86.2 particular patient or client by name or contain any other unique 86.3 personal identifier; (b) upon the express consent of the 86.4 enrollee or applicant; (c) pursuant to statute or court order 86.5 for the production of evidence or the discovery thereof; or (d) 86.6 in the event of claim or litigation between such person and the 86.7 provider or health maintenance organization wherein such data or 86.8 information is pertinent. In any case involving a suspected 86.9 violation of a law applicable to health maintenance 86.10 organizations in which access to health data maintained by the 86.11 health maintenance organization or participating entity is 86.12 necessary, the commissioner and the commissioner of health and 86.13 agents, while maintaining the privacy rights of individuals and 86.14 families, shall be permitted to obtain data that identifies any 86.15 particular patient or client by name. A health maintenance 86.16 organization shall be entitled to claim any statutory privileges 86.17 against such disclosure which the provider who furnished such 86.18 information to the health maintenance organization is entitled 86.19 to claim. 86.20 Sec. 36. Minnesota Statutes 1998, section 62D.14, 86.21 subdivision 5, is amended to read: 86.22 Subd. 5. The commissionerof health shalland the 86.23 commissioner of health have the power to administer oaths to and 86.24 examine witnesses, and to issue subpoenas. 86.25 Sec. 37. Minnesota Statutes 1998, section 62D.14, 86.26 subdivision 6, is amended to read: 86.27 Subd. 6. Reasonable expenses of examinations under this 86.28 section shall be assessed by the commissionerof healthagainst 86.29 the organization being examined, and shall be remitted to the 86.30 commissionerof healthfor deposit in the general fund of the 86.31 state treasury. 86.32 Sec. 38. Minnesota Statutes 1998, section 62D.15, 86.33 subdivision 1, is amended to read: 86.34 Subdivision 1. [SUSPENSION OR REVOCATION.] (a) The 86.35 commissionerof healthmay suspend or revoke any certificate of 86.36 authority issued to a health maintenance organization under 87.1 sections 62D.01 to 62D.30 if the commissioner finds that: 87.2(a)(1) The health maintenance organization is operating 87.3 significantly in contravention of its basic organizational 87.4 document, its health maintenance contract, or in a manner 87.5 contrary to that described in and reasonably inferred from any 87.6 other information submitted under section 62D.03, unless 87.7 amendments to such submissions have been filed with and approved 87.8 by the commissionerof health; 87.9(b)(2) The health maintenance organization issues 87.10 evidences of coverage which do not comply with the requirements 87.11 of section 62D.07; 87.12(c)(3) The health maintenance organization is unable to 87.13 fulfill its obligations to furnish comprehensive health 87.14 maintenance services as required under its health maintenance 87.15 contract; 87.16(d)(4) The health maintenance organization is no longer 87.17 financially responsible and may reasonably be expected to be 87.18 unable to meet its obligations to enrollees or prospective 87.19 enrollees; 87.20(e)(5) The health maintenance organization has failed to 87.21 implement a mechanism affording the enrollees an opportunity to 87.22 participate in matters of policy and operation under section 87.23 62D.06; 87.24(f)(6) The health maintenance organization has failed to 87.25 implement the complaint system required by section 62D.11 in a 87.26 manner designed to reasonably resolve valid complaints; 87.27(g)(7) The health maintenance organization, or any person 87.28 acting with its sanction, has advertised or merchandised its 87.29 services in an untrue, misrepresentative, misleading, deceptive, 87.30 or unfair manner; 87.31(h)(8) The continued operation of the health maintenance 87.32 organization would be hazardous to its enrollees; or 87.33(i)(9) The health maintenance organization has otherwise 87.34 failed to substantially comply with sections 62D.01 to 62D.30 or 87.35 with any other statute or administrative rule applicable to 87.36 health maintenance organizations, or has submitted false 88.1 information in any report required hereunder. 88.2 (b) The commissioner of health may by order suspend or 88.3 revoke the certificate of authority of a health maintenance 88.4 organization when the commissioner of health finds failure to 88.5 comply with section 62D.04, subdivision 1a, or any other area of 88.6 responsibility assigned by statute or rule to the commissioner 88.7 of health. The commissioner of health shall notify the 88.8 commissioner of any action taken under this paragraph. 88.9 Sec. 39. Minnesota Statutes 1998, section 62D.15, 88.10 subdivision 4, is amended to read: 88.11 Subd. 4. When the certificate of authority of a health 88.12 maintenance organization is revoked, the organization shall 88.13 proceed, immediately following the effective date of the order 88.14 of revocation, to wind up its affairs, and shall conduct no 88.15 further business except as may be essential to the orderly 88.16 conclusion of the affairs of the organization. It shall engage 88.17 in no further advertising or solicitation whatsoever. The 88.18 commissionerof healthmay, by written order, permit further 88.19 operation of the organization as the commissioner may find to be 88.20 in the best interest of enrollees, to the end that enrollees 88.21 will be afforded the greatest practical opportunity to obtain 88.22 continuing health care coverage. 88.23 Sec. 40. Minnesota Statutes 1998, section 62D.16, 88.24 subdivision 1, is amended to read: 88.25 Subdivision 1. When the commissionerof healthhas cause 88.26 to believe that grounds for the denial, suspension or revocation 88.27 of a certificate of authority exists, the commissioner shall 88.28 notify the health maintenance organization in writing 88.29 specifically stating the grounds for denial, suspension or 88.30 revocation and fixing a time of at least 20 days thereafter for 88.31 a hearing on the matter, except in summary proceedings as 88.32 provided in section 62D.18. 88.33 Sec. 41. Minnesota Statutes 1998, section 62D.16, 88.34 subdivision 2, is amended to read: 88.35 Subd. 2. After such hearing, or upon the failure of the 88.36 health maintenance organization to appear at the hearing, the 89.1 commissionerof healthshall take action as is deemed advisable 89.2 and shall issue written findings which shall be mailed to the 89.3 health maintenance organization. The action of the commissioner 89.4of healthshall be subject to judicial review pursuant to 89.5 chapter 14. 89.6 Sec. 42. Minnesota Statutes 1998, section 62D.17, 89.7 subdivision 1, is amended to read: 89.8 Subdivision 1. The commissionerof healthmay, for any 89.9 violation of statute or rule applicable to a health maintenance 89.10 organization, or in lieu of suspension or revocation of a 89.11 certificate of authority under section 62D.15, levy an 89.12 administrative penalty in an amount up to $25,000 for each 89.13 violation. In the case of contracts or agreements made pursuant 89.14 to section 62D.05, subdivisions 2 to 4, each contract or 89.15 agreement entered into or implemented in a manner which violates 89.16 sections 62D.01 to 62D.30 shall be considered a separate 89.17 violation. In determining the level of an administrative 89.18 penalty, the commissioner shall consider the following factors: 89.19 (1) the number of enrollees affected by the violation; 89.20 (2) the effect of the violation on enrollees' health and 89.21 access to health services; 89.22 (3) if only one enrollee is affected, the effect of the 89.23 violation on that enrollee's health; 89.24 (4) whether the violation is an isolated incident or part 89.25 of a pattern of violations;and89.26 (5) the economic benefits derived by the health maintenance 89.27 organization or a participating provider by virtue of the 89.28 violation; and 89.29 (6) any recommendation made by the commissioner of health. 89.30 Reasonable notice in writing to the health maintenance 89.31 organization shall be given of the intent to levy the penalty 89.32 and the reasons therefor, and the health maintenance 89.33 organization may have 15 days within which to file a written 89.34 request for an administrative hearing and review of the 89.35commissioner of health'scommissioner's determination. Such 89.36 administrative hearing shall be subject to judicial review 90.1 pursuant to chapter 14. 90.2 Sec. 43. Minnesota Statutes 1998, section 62D.17, 90.3 subdivision 3, is amended to read: 90.4 Subd. 3. (a) If the commissionerof healthshall, for any 90.5 reason, have cause to believe that any violation of sections 90.6 62D.01 to 62D.30 has occurred or is threatened, the commissioner 90.7of healthmay, before commencing action under sections 62D.15 90.8 and 62D.16, and subdivision 1, give notice to the health 90.9 maintenance organization and to the representatives, or other 90.10 persons who appear to be involved in such suspected violation, 90.11 to arrange a voluntary conference with the alleged violators or 90.12 their authorized representatives for the purpose of attempting 90.13 to ascertain the facts relating to such suspected violation and, 90.14 in the event it appears that any violation has occurred or is 90.15 threatened, to arrive at an adequate and effective means of 90.16 correcting or preventing such violation. 90.17 (b) Proceedings under this subdivision shall not be 90.18 governed by any formal procedural requirements, and may be 90.19 conducted in such manner as the commissionerof healthmay deem 90.20 appropriate under the circumstances. 90.21 Sec. 44. Minnesota Statutes 1998, section 62D.17, 90.22 subdivision 4, is amended to read: 90.23 Subd. 4. (a) The commissionerof healthmay issue an order 90.24 directing a health maintenance organization or a representative 90.25 of a health maintenance organization to cease and desist from 90.26 engaging in any act or practice in violation of the provisions 90.27 of sections 62D.01 to 62D.30. 90.28 (1) The cease and desist order may direct a health 90.29 maintenance organization to pay for or provide a service when 90.30 that service is required by statute or rule to be provided. 90.31 (2) Thecommissioner may issue acease and desist order 90.32directingmay direct a health maintenance organization to pay 90.33 for a service that is required by statute or rule to be 90.34 provided, only if there is a demonstrable and irreparable harm 90.35 to the public or an enrollee. 90.36 (3) If the cease and desist order involves a dispute over 91.1 the medical necessity of a procedure based on its experimental 91.2 nature, the commissioner may issue a cease and desist order only 91.3 if the following conditions are met: 91.4 (i) the commissioner has consulted with appropriate and 91.5 identified experts; 91.6 (ii) the commissioner has reviewed relevant scientific and 91.7 medical literature; and 91.8 (iii) the commissioner has considered all other relevant 91.9 factors including whether final approval of the technology or 91.10 procedure has been granted by the appropriate government agency; 91.11 the availability of scientific evidence concerning the effect of 91.12 the technology or procedure on health outcomes; the availability 91.13 of scientific evidence that the technology or procedure is as 91.14 beneficial as established alternatives; and the availability of 91.15 evidence of benefit or improvement without the technology or 91.16 procedure. 91.17 (b) Within 20 days after service of the order to cease and 91.18 desist, the respondent may request a hearing on the question of 91.19 whether acts or practices in violation of sections 62D.01 to 91.20 62D.30 have occurred. Such hearings shall be subject to 91.21 judicial review as provided by chapter 14. 91.22 If the acts or practices involve violation of the reporting 91.23 requirements of section 62D.08, or if the commissioner has 91.24 ordered the rehabilitation, liquidation, or conservation of the 91.25 health maintenance organization in accordance with section 91.26 62D.18, the health maintenance organization may request an 91.27 expedited hearing on the matter. The hearing shall be held 91.28 within 15 days of the request. Within ten days thereafter, an 91.29 administrative law judge shall issue a recommendation on the 91.30 matter. The commissioner shall make a final determination on 91.31 the matter within ten days of receipt of the administrative law 91.32 judge's recommendation. 91.33When a request for a stay accompanies the hearing request,91.34the matter shall be referred to the office of administrative91.35hearings within three working days of receipt of the request.91.36Within ten days thereafter, an administrative law judge shall92.1issue a recommendation to grant or deny the stay. The92.2commissioner shall grant or deny the stay within five days of92.3receipt of the administrative law judge's recommendation.92.4To the extent the acts or practices alleged do not involve92.5(1) violations of section 62D.08; (2) violations which may92.6result in the financial insolvency of the health maintenance92.7organization; (3) violations which threaten the life and health92.8of enrollees; (4) violations which affect whole classes of92.9enrollees; or (5) violations of benefits or service requirements92.10mandated by law; if a timely request for a hearing is made, the92.11cease and desist order shall be stayed for a period of 90 days92.12from the date the hearing is requested or until a final92.13determination is made on the order, whichever is earlier.92.14During this stay, the respondent may show cause why the order92.15should not become effective upon the expiration of the stay.92.16Arguments on this issue shall be made through briefs filed with92.17the administrative law judge no later than ten days prior to the92.18expiration of the stay.92.19 Sec. 45. Minnesota Statutes 1998, section 62D.17, 92.20 subdivision 5, is amended to read: 92.21 Subd. 5. In the event of noncompliance with a cease and 92.22 desist order issued pursuant to subdivision 4, the commissioner 92.23of healthmay institute a proceeding to obtain injunctive relief 92.24 or other appropriate relief in Ramsey county district court. 92.25 Sec. 46. Minnesota Statutes 1998, section 62D.18, 92.26 subdivision 1, is amended to read: 92.27 Subdivision 1. [COMMISSIONER OF HEALTH;COURT ORDER.] The 92.28 commissionerof healthmay apply by verified petition to the 92.29 district court of Ramsey county or the county in which the 92.30 principal office of the health maintenance organization is 92.31 located for an order directing the commissionerof healthto 92.32 rehabilitate or liquidate a health maintenance organization. 92.33 The rehabilitation or liquidation of a health maintenance 92.34 organization shall be conducted under the supervision of the 92.35 commissionerof healthunder the procedures, and with the powers 92.36 granted to a rehabilitator or liquidator, in chapter 60B, except 93.1 to the extent that the nature of health maintenance 93.2 organizations renders the procedures or powers clearly 93.3 inappropriate and as provided in this subdivision or in chapter 93.4 60B. A health maintenance organization shall be considered an 93.5 insurance company for the purposes of rehabilitation or 93.6 liquidation as provided in subdivisions 4, 6, and 7. 93.7 Sec. 47. Minnesota Statutes 1998, section 62D.18, 93.8 subdivision 7, is amended to read: 93.9 Subd. 7. [EXAMINATION ACCOUNT.] The commissionerof health93.10 shall assess against a health maintenance organization not yet 93.11 in rehabilitation or liquidation a fee sufficient to cover the 93.12 costs of a special examination. The fee must be deposited in an 93.13 examination account. Money in the account is appropriated to 93.14 the commissionerof healthto pay for the examinations. If the 93.15 money in the account is insufficient to pay the initial costs of 93.16 examinations, the commissioner may use other money appropriated 93.17 to the commissioner, provided the other appropriation is 93.18 reimbursed from the examination account when it contains 93.19 sufficient money. Money from the examination account must be 93.20 used to pay per diem salaries and expenses of special examiners, 93.21 including meals, lodging, laundry, transportation, and mileage. 93.22 The salary of regular employees of thehealthcommerce 93.23 department must not be paid out of the account. 93.24 Sec. 48. Minnesota Statutes 1998, section 62D.19, is 93.25 amended to read: 93.26 62D.19 [UNREASONABLE EXPENSES.] 93.27 No health maintenance organization shall incur or pay for 93.28 any expense of any nature which is unreasonably high in relation 93.29 to the value of the service or goods provided. The commissioner 93.30of healthshall implement and enforce this section by rules 93.31 adopted under this section. 93.32 In an effort to achieve the stated purposes of sections 93.33 62D.01 to 62D.30; in order to safeguard the underlying nonprofit 93.34 status of health maintenance organizations; and to ensure that 93.35 the payment of health maintenance organization money to major 93.36 participating entities results in a corresponding benefit to the 94.1 health maintenance organization and its enrollees, when 94.2 determining whether an organization has incurred an unreasonable 94.3 expense in relation to a major participating entity, due 94.4 consideration shall be given to, in addition to any other 94.5 appropriate factors, whether the officers and trustees of the 94.6 health maintenance organization have acted with good faith and 94.7 in the best interests of the health maintenance organization in 94.8 entering into, and performing under, a contract under which the 94.9 health maintenance organization has incurred an expense. The 94.10 commissioner has standing to sue, on behalf of a health 94.11 maintenance organization, officers or trustees of the health 94.12 maintenance organization who have breached their fiduciary duty 94.13 in entering into and performing such contracts. 94.14 Sec. 49. Minnesota Statutes 1998, section 62D.20, 94.15 subdivision 1, is amended to read: 94.16 Subdivision 1. [RULEMAKING.] The commissionerof health94.17 may, pursuant to chapter 14, promulgate such reasonable rules as 94.18 are necessary or proper to carry out the provisions of sections 94.19 62D.01 to 62D.30. Included among such rules shall be those 94.20 which provide minimum requirements for the provision of 94.21 comprehensive health maintenance services, as defined in section 94.22 62D.02, subdivision 7, and reasonable exclusions therefrom. 94.23 Nothing in such rules shall force or require a health 94.24 maintenance organization to provide elective, induced abortions, 94.25 except as medically necessary to prevent the death of the 94.26 mother, whether performed in a hospital, other abortion 94.27 facility, or the office of a physician; the rules shall provide 94.28 every health maintenance organization the option of excluding or 94.29 including elective, induced abortions, except as medically 94.30 necessary to prevent the death of the mother, as part of its 94.31 comprehensive health maintenance services. 94.32 Sec. 50. Minnesota Statutes 1998, section 62D.21, is 94.33 amended to read: 94.34 62D.21 [FEES.] 94.35 Every health maintenance organization subject to sections 94.36 62D.01 to 62D.30 shall pay to the commissionerof healthfees as 95.1 prescribed by the commissionerof health pursuant to section95.2144.122for the following: 95.3 (a) Filing an application for a certificate of authority, 95.4 (b) Filing an amendment to a certificate of authority, 95.5 (c) Filing each annual report, and 95.6 (d) Other filings, as specified by rule. 95.7 Sec. 51. Minnesota Statutes 1998, section 62D.211, is 95.8 amended to read: 95.9 62D.211 [RENEWAL FEE.] 95.10 Each health maintenance organization subject to sections 95.11 62D.01 to 62D.30 shall submit to the commissionerof healtheach 95.12 year before June 15 a certificate of authority renewal fee in 95.13 the amount of $10,000 each plus 20 cents per person enrolled in 95.14 the health maintenance organization on December 31 of the 95.15 preceding year. The commissioner may adjust the renewal fee in 95.16 rule under the provisions of chapter 14. 95.17 Sec. 52. Minnesota Statutes 1998, section 62D.22, 95.18 subdivision 4, is amended to read: 95.19 Subd. 4. To the extent that it furthers the purposes of 95.20 sections 62D.01 to 62D.30, the commissionerof healthshall 95.21 attempt to coordinate the operations of sections 62D.01 to 95.22 62D.30 relating to the quality of health care services with the 95.23 operations of United States Code, title 42, sections 1320c to 95.24 1320c-20. The commissioner shall seek and consider 95.25 recommendations from the commissioner of health regarding this 95.26 coordination. 95.27 Sec. 53. Minnesota Statutes 1998, section 62D.22, 95.28 subdivision 10, is amended to read: 95.29 Subd. 10. Any person or committee conducting a review of a 95.30 health maintenance organization or a participating entity, 95.31 pursuant to sections 62D.01 to 62D.30, shall have access to any 95.32 data or information necessary to conduct the review. All data 95.33 or information is subject to admission into evidence in any 95.34 civil action initiated by the commissionerof healthagainst the 95.35 health maintenance organization. The data and information are 95.36 subject to chapter 13. 96.1 Sec. 54. Minnesota Statutes 1998, section 62D.24, is 96.2 amended to read: 96.3 62D.24 [STATE COMMISSIONER OF HEALTH'SAUTHORITY TO 96.4 CONTRACT.] 96.5 The commissionerof health, in carrying out the obligations 96.6 under sections 62D.01 to 62D.30, may contract with the 96.7 commissioner ofcommercehealth or other qualified persons to 96.8 make recommendations concerning the determinations required to 96.9 be made. Such recommendations may be accepted in full or in 96.10 part by the commissionerof health. 96.11 Sec. 55. Minnesota Statutes 1998, section 62D.30, 96.12 subdivision 1, is amended to read: 96.13 Subdivision 1. The commissionerof healthmay establish 96.14 demonstration projects to allow health maintenance organizations 96.15 to extend coverage to: 96.16 (a) Individuals enrolled in Part A or Part B, or both, of 96.17 the Medicare program, Title XVIII of the Social Security Act, 96.18 United States Code, title 42, section 1395 et seq.; 96.19 (b) Groups of fewer than 50 employees where each group is 96.20 covered by a single group health policy; 96.21 (c) Individuals who are not eligible for enrollment in any 96.22 group health maintenance contracts; and 96.23 (d) Low income population groups. 96.24 For purposes of this section, the commissionerof health96.25 may waive compliance with minimum benefits pursuant to sections 96.26 62A.151 and 62D.02, subdivision 7, full financial risk pursuant 96.27 to section 62D.04, subdivision 1, clause (f), open enrollment 96.28 pursuant to section 62D.10, and to applicable rules if there is 96.29 reasonable evidence that the rules prohibit the operation of the 96.30 demonstration project. The commissioner shall provide for 96.31 public comment before any statute or rule is waived. 96.32 Sec. 56. Minnesota Statutes 1998, section 62D.30, 96.33 subdivision 3, is amended to read: 96.34 Subd. 3. A health maintenance organization electing to 96.35 participate in a demonstration project shall apply to the 96.36 commissioner for approval on a form developed by the 97.1 commissioner. The application shall include at least the 97.2 following: 97.3 (a) A statement identifying the population that the project 97.4 is designed to serve; 97.5 (b) A description of the proposed project including a 97.6 statement projecting a schedule of costs and benefits for the 97.7 enrollee; 97.8 (c) Reference to the sections of Minnesota Statutes and 97.9 department ofhealthcommerce rules for which waiver is 97.10 requested; 97.11 (d) Evidence that application of the requirements of 97.12 applicable Minnesota Statutes and department ofhealthcommerce 97.13 rules would, unless waived, prohibit the operation of the 97.14 demonstration project; 97.15 (e) Evidence that another arrangement is available for 97.16 assumption of full financial risk if full financial risk is 97.17 waived under subdivision 1; 97.18 (f) An estimate of the number of years needed to adequately 97.19 demonstrate the project's effects; and 97.20 (g) Other information the commissioner may reasonably 97.21 require. 97.22 Sec. 57. [REPORT; REGULATION OF RISK-BEARING ENTITIES.] 97.23 The commissioners of commerce and health shall study the 97.24 issues involved in consistent regulation of all entities that 97.25 assume financial risks related to health coverage in this 97.26 state. The study must consider all such entities, regardless of 97.27 current licensure or regulation. The commissioners must 97.28 consider laws recently enacted by the state of Ohio on this 97.29 subject and any relevant model laws or regulations adopted or 97.30 under consideration by the National Association of Insurance 97.31 Commissioners. The commissioners shall provide a written 97.32 report, with recommendations, to the legislature in compliance 97.33 with Minnesota Statutes, section 3.195, no later than January 97.34 15, 2000. 97.35 Sec. 58. [EFFECT OF TRANSFER OF RESPONSIBILITIES.] 97.36 Minnesota Statutes, section 15.039, applies to this act. 98.1 Sec. 59. [REPEALER.] 98.2 Minnesota Statutes 1998, section 62D.18, is repealed. 98.3 Sec. 60. [EFFECTIVE DATE.] 98.4 This article is effective July 1, 2000, except that section 98.5 57 is effective the day following final enactment. 98.6 ARTICLE 4 98.7 COMMUNITY INTEGRATED SERVICE NETWORKS, HEALTH 98.8 CARE COOPERATIVES, AND COMMUNITY PURCHASING ARRANGEMENTS 98.9 Section 1. Minnesota Statutes 1998, section 62N.02, 98.10 subdivision 4, is amended to read: 98.11 Subd. 4. [COMMISSIONER.] "Commissioner" means the 98.12 commissioner ofhealthcommerce or the commissioner's designated 98.13 representative. With respect to this chapter, the commissioner 98.14 of health has the same role as under chapter 62D. 98.15 Sec. 2. Minnesota Statutes 1998, section 62N.26, is 98.16 amended to read: 98.17 62N.26 [SHARED SERVICES COOPERATIVE.] 98.18 The commissionerof healthshall establish, or assist in 98.19 establishing, a shared services cooperative organized under 98.20 chapter 308A to make available administrative and legal 98.21 services, technical assistance, provider contracting and billing 98.22 services, and other services to those community integrated 98.23 service networks that choose to participate in the cooperative. 98.24 The commissioner shall provide, to the extent funds are 98.25 appropriated, start-up loans sufficient to maintain the shared 98.26 services cooperative until its operations can be maintained by 98.27 fees and contributions. The cooperative must not be staffed, 98.28 administered, or supervised by the commissionerof health. The 98.29 cooperative shall make use of existing resources that are 98.30 already available in the community, to the extent possible. 98.31 Sec. 3. Minnesota Statutes 1998, section 62N.31, 98.32 subdivision 1, is amended to read: 98.33 Subdivision 1. [GENERAL.] Each health care providing 98.34 entity seeking initial accreditation as an accredited capitated 98.35 provider shall submit to the commissionerof healthsufficient 98.36 information to establish that the applicant has operational 99.1 capacity, facilities, personnel, and financial capability to 99.2 provide the contracted covered services to the enrollees of the 99.3 network for which it seeks accreditation (1) on an ongoing 99.4 basis; and (2) for a period of 120 days following the insolvency 99.5 of the network without receiving payment from the network. 99.6 Accreditation shall continue until abandoned by the accredited 99.7 capitated provider or revoked by the commissioner in accordance 99.8 with subdivision 4. The applicant may establish financial 99.9 capability by demonstrating that the provider amount at risk can 99.10 be covered by or through any of allocated or restricted funds, a 99.11 letter of credit, the taxing authority of the applicant or 99.12 governmental sponsor of the applicant, an unrestricted fund 99.13 balance at least two times the provider amount at risk, 99.14 reinsurance, either purchased directly by the applicant or by 99.15 the community network to which it will be accredited, or any 99.16 other method accepted by the commissioner. Accreditation of a 99.17 health care providing entity shall not in itself limit the right 99.18 of the accredited capitated provider to seek payment of unpaid 99.19 capitated amounts from a community network, whether the 99.20 community network is solvent or insolvent; provided that, if the 99.21 community network is subject to any liquidation, rehabilitation, 99.22 or conservation proceedings, the accredited capitated provider 99.23 shall have the status accorded creditors under section 60B.44, 99.24 subdivision 10. 99.25 Sec. 4. Minnesota Statutes 1998, section 62R.04, 99.26 subdivision 5, is amended to read: 99.27 Subd. 5. [COMMISSIONER.] Unless otherwise specified, 99.28 "commissioner" means the commissioner ofhealth for a health99.29care network cooperative licensed under chapter 62D or 62N and99.30the commissioner ofcommercefor a health care network99.31cooperative licensed under chapter 62C. With respect to this 99.32 chapter, the commissioner of health has the same role as under 99.33 chapter 62D. 99.34 Sec. 5. Minnesota Statutes 1998, section 62R.25, is 99.35 amended to read: 99.36 62R.25 [NOTIFICATION OF CONTRACT; REPORT TO LEGISLATURE.] 100.1(a)Each health provider cooperative shall notify the 100.2office of rural healthcommissioner in writing upon entering a 100.3 contract described in section 62R.17. 100.4(b) The department of health, office of rural health, shall100.5provide an information report to the MinnesotaCare finance100.6division of the house health and human services committee and100.7the senate health care committee no later than January 15, 1999,100.8on the status of direct contracting between health provider100.9cooperatives and self-insured employer plans or qualified100.10employers in accordance with sections 62R.17 to 62R.26. The100.11report shall consider the effects on public policy and on health100.12provider cooperatives of a possible requirement that health100.13provider cooperatives using direct contracting be obligated to100.14become community integrated service networks.100.15 Sec. 6. Minnesota Statutes 1998, section 62T.01, 100.16 subdivision 4, is amended to read: 100.17 Subd. 4. [COMMISSIONER.] "Commissioner" means the 100.18 commissioner ofhealthcommerce. With respect to this chapter, 100.19 the commissioner of health has the same role as under chapter 100.20 62D. 100.21 Sec. 7. [EFFECTIVE DATE.] 100.22 This article is effective July 1, 2000. 100.23 ARTICLE 5 100.24 CONFORMING CHANGES 100.25 Section 1. Minnesota Statutes 1998, section 60B.02, is 100.26 amended to read: 100.27 60B.02 [PERSONS COVERED.] 100.28 The proceedings authorized by sections 60B.01 to 60B.61 may 100.29 be applied to: 100.30 (1) All insurers who are doing, or have done, an insurance 100.31 business in this state, and against whom claims arising from 100.32 that business may exist now or in the future; 100.33 (2) All insurers who purport to do an insurance business in 100.34 this state; 100.35 (3) All insurers who have insureds resident in this state; 100.36 (4) All other persons organized or in the process of 101.1 organizing with the intent to do an insurance business in this 101.2 state; and 101.3 (5) All nonprofit service plan corporations incorporated or 101.4 operating under the Nonprofit Health Service Plan Corporation 101.5 Act, health maintenance organizations operating under chapter 101.6 62D, any health plan incorporated under chapter 317A, all 101.7 fraternal benefit societies operating under chapter 64B, except 101.8 those associations enumerated in section 64B.38, all township 101.9 mutual or other companies operating under chapter 67A, and all 101.10 reciprocals or interinsurance exchanges operating under chapter 101.11 71A. 101.12 Sec. 2. Minnesota Statutes 1998, section 60B.03, 101.13 subdivision 2, is amended to read: 101.14 Subd. 2. [COMMISSIONER.] "Commissioner" means the 101.15 commissioner of commerce of the state of Minnesota and, in that 101.16 commissioner's absence or disability, a deputy or other person 101.17 duly designated to act in that commissioner's place.In the101.18context of rehabilitation or liquidation of a health maintenance101.19organization, "commissioner" means the commissioner of health of101.20the state of Minnesota and, in that commissioner's absence or101.21disability, a deputy or other person duly designated to act in101.22that commissioner's place.101.23 Sec. 3. Minnesota Statutes 1998, section 60B.03, 101.24 subdivision 4, is amended to read: 101.25 Subd. 4. [INSURER.] "Insurer" means any person who is 101.26 doing, has done, purports to do or is licensed to do an 101.27 insurance business and is or has been subject to the authority 101.28 of, or to liquidation, rehabilitation, reorganization, or 101.29 conservation by,athe commissioner. For purposes of sections 101.30 60B.01 to 60B.61, all other persons included under section 101.31 60B.02 shall be deemed to be insurers. 101.32 Sec. 4. Minnesota Statutes 1998, section 60B.15, is 101.33 amended to read: 101.34 60B.15 [GROUNDS FOR REHABILITATION.] 101.35 The commissioner may apply by verified petition to the 101.36 district court for Ramsey county or for the county in which the 102.1 principal office of the insurer is located for an order 102.2 directing the commissioner to rehabilitate a domestic insurer or 102.3 an alien insurer domiciled in this state on any one or more of 102.4 the following grounds: 102.5 (1) Any ground on which the commissioner may apply for an 102.6 order of liquidation under section 60B.20, whenever the 102.7 commissioner believes that the insurer may be successfully 102.8 rehabilitated without substantial increase in the risk of loss 102.9 to creditors of the insurer, its policyholders or to the public; 102.10 (2) That the commissioner has reasonable cause to believe 102.11 that there has been theft from the insurer, wrongful 102.12 sequestration or diversion of the insurer's assets, forgery or 102.13 fraud affecting the insurer or other illegal conduct in, by or 102.14 with respect to the insurer, which endanger assets in an amount 102.15 threatening insolvency of the insurer; 102.16 (3) That substantial and unexplained discrepancies exist 102.17 between the insurer's records and the most recent annual report 102.18 or other official company reports; 102.19 (4) That the insurer, after written demand by the 102.20 commissioner, has failed to remove any person who in fact has 102.21 executive authority in the insurer, whether an officer, manager, 102.22 general agent, employee, or other person, if the person has been 102.23 found by the commissioner after notice and hearing to be 102.24 dishonest or untrustworthy in a way affecting the insurer's 102.25 business such as is the basis for action under section 60A.052; 102.26 (5) That control of the insurer, whether by stock ownership 102.27 or otherwise, and whether direct or indirect, is in one or more 102.28 persons found by the commissioner after notice and hearing to be 102.29 dishonest or untrustworthy such as is the basis for action under 102.30 section 60A.052; 102.31 (6) That the insurer, after written demand by the 102.32 commissioner, has failed within a reasonable period of time to 102.33 terminate the employment and status and all influences on 102.34 management of any person who in fact has executive authority in 102.35 the insurer, whether an officer, manager, general agent, 102.36 employee or other person if the person has refused to submit to 103.1 lawful examination under oath by the commissioner concerning the 103.2 affairs of the insurer, whether in this state or elsewhere; 103.3 (7) That after lawful written demand by the commissioner 103.4 the insurer has failed to submit promptly any of its own 103.5 property, books, accounts, documents, or other records, or those 103.6 of any subsidiary or related company within the control of the 103.7 insurer, or those of any person having executive authority in 103.8 the insurer so far as they pertain to the insurer, to reasonable 103.9 inspection or examination by the commissioner or an authorized 103.10 representative. If the insurer is unable to submit the 103.11 property, books, accounts, documents, or other records of a 103.12 person having executive authority in the insurer, it shall be 103.13 excused from doing so if it promptly and effectively terminates 103.14 the relationship of the person to the insurer; 103.15 (8) That without first obtaining the written consent of the 103.16 commissioner, or if required by law, the written consent of the 103.17 attorney general, the insurer has transferred, or attempted to 103.18 transfer, substantially its entire property or business, or has 103.19 entered into any transaction the effect of which is to merge, 103.20 consolidate, or reinsure substantially its entire property or 103.21 business of any other person; 103.22 (9) That the insurer or its property has been or is the 103.23 subject of an application for the appointment of a receiver, 103.24 trustee, custodian, conservator or sequestrator or similar 103.25 fiduciary of the insurer or its property otherwise than as 103.26 authorized under sections 60B.01 to 60B.61, and that such 103.27 appointment has been made or is imminent, and that such 103.28 appointment might divest the courts of this state of 103.29 jurisdiction or prejudice orderly delinquency proceedings under 103.30 sections 60B.01 to 60B.61; 103.31 (10) That within the previous year the insurer has 103.32 willfully violated its charter or articles of incorporation or 103.33 its bylaws or any applicable insurance law or regulation of any 103.34 state, or of the federal government, or any valid order of the 103.35 commissioner under section 60B.11 in any manner or as to any 103.36 matter which threatens substantial injury to the insurer, its 104.1 creditors, it policyholders or the public, or having become 104.2 aware within the previous year of an unintentional or willful 104.3 violation has failed to take all reasonable steps to remedy the 104.4 situation resulting from the violation and to prevent the same 104.5 violations in the future; 104.6 (11) That the directors of the insurer are deadlocked in 104.7 the management of the insurer's affairs and that the members or 104.8 shareholders are unable to break the deadlock and that 104.9 irreparable injury to the insurer, its creditors, its 104.10 policyholders, or the public is threatened by reason thereof; 104.11 (12) That the insurer has failed to pay for 60 days after 104.12 due date any obligation to this state or any political 104.13 subdivision thereof or any judgment entered in this state, 104.14 except that such nonpayment shall not be a ground until 60 days 104.15 after any good faith effort by the insurer to contest the 104.16 obligation or judgment has been terminated, whether it is before 104.17 the commissioner or in the courts; 104.18 (13) That the insurer has failed to file its annual report 104.19 or other report within the time allowed by law, and after 104.20 written demand by the commissioner has failed to give an 104.21 adequate explanation immediately; 104.22 (14) That two-thirds of the board of directors, or the 104.23 holders of a majority of the shares entitled to vote, or a 104.24 majority of members or policyholders of an insurer subject to 104.25 control by its members or policyholders, consent to 104.26 rehabilitation under sections 60B.01 to 60B.61; 104.27 (15) That the insurer is engaging in a systematic practice 104.28 of reaching settlements with and obtaining releases from 104.29 policyholders or third party claimants and then unreasonably 104.30 delaying payment of or failing to pay the agreed upon 104.31 settlements; 104.32 (16) That the insurer is in such condition that the further 104.33 transaction of business would be hazardous, financially or 104.34 otherwise, to its policyholders, its creditors, or the public; 104.35 (17) That within the previous 12 months the insurer has 104.36 systematically attempted to compromise with its creditors on the 105.1 ground that it is financially unable to pay its claims in full; 105.2 (18)In the context of a health maintenance organization,105.3"insurer" when used in clauses (1) to (17) means "health105.4maintenance organization."In addition to the grounds in clauses 105.5 (1) to (17), any one of the following constitutes grounds for 105.6 rehabilitation of a health maintenance organization: 105.7 (a) the health maintenance organization is unable or is 105.8 expected to be unable to meet its debts as they become due; 105.9 (b) grounds exist under section 62D.042, subdivision 7; 105.10 (c) the health maintenance organization's liabilities 105.11 exceed the current value of its assets, exclusive of intangibles 105.12 and, where the guaranteeing organization's financial condition 105.13 no longer meets the requirements of sections 62D.041 and 105.14 62D.042, exclusive of any deposits, letters of credit, or 105.15 guarantees provided by any guaranteeing organization under 105.16 chapter 62D; 105.17 (d) in addition to grounds under clause (16), within the 105.18 last year the health maintenance organization has failed, and 105.19 the commissionerof healthexpects such failure to continue in 105.20 the future, to make comprehensive medical care adequately 105.21 available and accessible to its enrollees and the health 105.22 maintenance organization has not successfully implemented a plan 105.23 of corrective action pursuant to section 62D.121, subdivision 7; 105.24 and 105.25 (e) in addition to grounds under clause (16), within the 105.26 last year the directors or officers of the health maintenance 105.27 organization willfully violated the requirements of section 105.28 317A.251, or having become aware within the previous year of an 105.29 unintentional or willful violation of section 317A.251, have 105.30 failed to take all reasonable steps to remedy the situation 105.31 resulting from the violation and to prevent the same violation 105.32 in the future; 105.33 (19) An affiliate of the insurer has been placed in 105.34 conservatorship, rehabilitation, liquidation, or other court 105.35 supervision such that the insurer's financial condition may be 105.36 jeopardized. 106.1 Sec. 5. Minnesota Statutes 1998, section 60B.20, is 106.2 amended to read: 106.3 60B.20 [GROUNDS FOR LIQUIDATION.] 106.4 The commissioner may apply by verified petition to the 106.5 district court for Ramsey county or for the county in which the 106.6 principal office of the insurer is located for an order to 106.7 liquidate a domestic insurer or an alien insurer domiciled in 106.8 this state on any one or more of the following grounds: 106.9 (1) Any ground on which the commissioner may apply for an 106.10 order of rehabilitation under section 60B.15, whenever the 106.11 commissioner believes that attempts to rehabilitate the insurer 106.12 would substantially increase the risk of loss to its creditors, 106.13 its policyholders, or the public, or would be futile, or that 106.14 rehabilitation would serve no useful purpose; 106.15 (2) That the insurer is or is about to become insolvent; 106.16 (3) That the insurer has not transacted the business for 106.17 which it was organized or incorporated during the previous 12 106.18 months or has transacted only a token such business during that 106.19 period, although authorized to do so throughout that period, or 106.20 that more than 12 months after incorporation it has failed to 106.21 become authorized to do the business for which it was organized 106.22 or incorporated; 106.23 (4) That the insurer has commenced, or within the previous 106.24 year has attempted to commence, voluntary dissolution or 106.25 liquidation otherwise than as provided in section 60B.04, 106.26 subdivision 3 in the case of a solvent insurer; 106.27 (5) That the insurer has concealed records or assets from 106.28 the commissioner or improperly removed them from the 106.29 jurisdiction, or the commissioner believes that the insurer is 106.30 about to do so; 106.31 (6) That the insurer does not satisfy the requirements that 106.32 would be applicable if it were seeking initial authorization in 106.33 this state to do the business for which it was organized or 106.34 incorporated, except for: 106.35 (i) Requirements that are intended to apply only at the 106.36 time the initial authorization to do business is obtained, and 107.1 not thereafter; and 107.2 (ii) Requirements that are expressly made inapplicable by 107.3 the laws establishing the requirements; 107.4 (7) That the holders of two-thirds of the shares entitled 107.5 to vote, or two-thirds of the members or policyholders entitled 107.6 to vote in an insurer controlled by its members or 107.7 policyholders, have consented to a petition; 107.8 (8)In the context of a health maintenance organization,107.9"insurer" when used in clauses (1) to (7) means "health107.10maintenance organization."In addition to the grounds in clauses 107.11 (1) to (7), any one of the following constitutes grounds for 107.12 liquidation of a health maintenance organization: 107.13 (i) the health maintenance organization is unable or is 107.14 expected to be unable to meet its debts as they become due; 107.15 (ii) grounds exist under section 62D.042, subdivision 7; 107.16 (iii) the health maintenance organization's liabilities 107.17 exceed the current value of its assets, exclusive of intangibles 107.18 and, where the guaranteeing organization's financial condition 107.19 no longer meets the requirements of sections 62D.041 and 107.20 62D.042, exclusive of any deposits, letters of credit, or 107.21 guarantees provided by any guaranteeing organization under 107.22 chapter 62D; 107.23 (iv) within the last year the health maintenance 107.24 organization has failed, and the commissionerof healthexpects 107.25 failure to continue in the future, to make comprehensive medical 107.26 care adequately available and accessible to its enrollees and 107.27 the health maintenance organization has not successfully 107.28 implemented a plan of corrective action pursuant to section 107.29 62D.121, subdivision 7; and 107.30 (v) within the last year the directors or officers of the 107.31 health maintenance organization willfully violated the 107.32 requirements of section 317A.251, or having become aware within 107.33 the previous year of an unintentional or willful violation of 107.34 section 317A.251, have failed to take all reasonable steps to 107.35 remedy the situation resulting from the violation and to prevent 107.36 the same violation in the future. 108.1 Sec. 6. Minnesota Statutes 1998, section 60G.01, 108.2 subdivision 2, is amended to read: 108.3 Subd. 2. [COMMISSIONER.] "Commissioner" means the 108.4 commissioner of commerce, except that "commissioner" means the108.5commissioner of health for administrative supervision of health108.6maintenance organizations. 108.7 Sec. 7. Minnesota Statutes 1998, section 60G.01, 108.8 subdivision 4, is amended to read: 108.9 Subd. 4. [DEPARTMENT.] "Department" means the department 108.10 of commerce, except that "department" means the department of108.11health for administrative supervision of health maintenance108.12organizations. 108.13 Sec. 8. Minnesota Statutes 1998, section 62A.61, is 108.14 amended to read: 108.15 62A.61 [DISCLOSURE OF METHODS USED BY HEALTH CARRIERS TO 108.16 DETERMINE USUAL AND CUSTOMARY FEES.] 108.17 (a) A health carrier that bases reimbursement to health 108.18 care providers upon a usual and customary fee must maintain in 108.19 its office a copy of a description of the methodology used to 108.20 calculate fees including at least the following: 108.21 (1) the frequency of the determination of usual and 108.22 customary fees; 108.23 (2) a general description of the methodology used to 108.24 determine usual and customary fees; and 108.25 (3) the percentile of usual and customary fees that 108.26 determines the maximum allowable reimbursement. 108.27 (b) A health carrier must provide a copy of the information 108.28 described in paragraph (a) to the commissionerof health or the108.29commissioner of commerce,upon request. 108.30 (c) The commissionerof health or the commissioner of108.31commerce, as appropriate,may use to enforce this section any 108.32 enforcement powers otherwise available to the commissioner with 108.33 respect to the health carrier. The commissionerof health or108.34commerce, as appropriate,may require health carriers to provide 108.35 the information required under this section and may use any 108.36 powers granted under other laws relating to the regulation of 109.1 health carriers to enforce compliance. 109.2 (d) For purposes of this section, "health carrier" has the 109.3 meaning given in section 62A.011. 109.4 Sec. 9. Minnesota Statutes 1998, section 62L.02, 109.5 subdivision 8, is amended to read: 109.6 Subd. 8. [COMMISSIONER.] "Commissioner" means the 109.7 commissioner of commercefor health carriers subject to the109.8jurisdiction of the department of commerce or the commissioner109.9of health for health carriers subject to the jurisdiction of the109.10department of health,or therelevantcommissioner's designated 109.11 representative.For purposes of sections 62L.13 to 62L.22,109.12"commissioner" means the commissioner of commerce or that109.13commissioner's designated representative.109.14 Sec. 10. Minnesota Statutes 1998, section 62L.05, 109.15 subdivision 12, is amended to read: 109.16 Subd. 12. [DEMONSTRATION PROJECTS.] Nothing in this 109.17 chapter prohibits a health maintenance organization from 109.18 offering a demonstration project authorized under section 62D.30. 109.19 The commissionerof healthmay approve a demonstration project 109.20 which offers benefits that do not meet the requirements of a 109.21 small employer plan if the commissioner finds that the 109.22 requirements of section 62D.30 are otherwise met. 109.23 Sec. 11. Minnesota Statutes 1998, section 62L.08, 109.24 subdivision 10, is amended to read: 109.25 Subd. 10. [RATING REPORT.] Beginning January 1, 1995, and 109.26 annually thereafter, thecommissioners of health and109.27commercecommissioner shall provide ajointreport to the 109.28 legislature on the effect of the rating restrictions required by 109.29 this section and the appropriateness of proceeding with 109.30 additional rate reform. Each report must include an analysis of 109.31 the availability of health care coverage due to the rating 109.32 reform, the equitable and appropriate distribution of risk and 109.33 associated costs, the effect on the self-insurance market, and 109.34 any resulting or anticipated change in health plan design and 109.35 market share and availability of health carriers. 109.36 Sec. 12. Minnesota Statutes 1998, section 62L.08, 110.1 subdivision 11, is amended to read: 110.2 Subd. 11. [LOSS RATIO STANDARDS.] Notwithstanding section 110.3 62A.02, subdivision 3, relating to loss ratios, each policy or 110.4 contract form used with respect to a health benefit plan 110.5 offered, or issued in the small employer market, is subject, 110.6 beginning July 1, 1993, to section 62A.021.The commissioner of110.7health has, with respect to carriers under that commissioner's110.8jurisdiction, all of the powers of the commissioner of commerce110.9under that section.110.10 Sec. 13. Minnesota Statutes 1998, section 62M.11, is 110.11 amended to read: 110.12 62M.11 [COMPLAINTS TO COMMERCEOR HEALTH.] 110.13 Notwithstanding the provisions of sections 62M.01 to 110.14 62M.16, an enrollee may file a complaint regarding a 110.15 determination not to certify directly to the commissioner 110.16responsible for regulating the utilization review110.17organizationof commerce. 110.18 Sec. 14. Minnesota Statutes 1998, section 62M.16, is 110.19 amended to read: 110.20 62M.16 [RULEMAKING.] 110.21 If it is determined that rules are reasonable and necessary 110.22 to accomplish the purpose of sections 62M.01 to 62M.16, the 110.23 rules must be adoptedthrough a joint rulemaking process by both110.24the department of commerce and the department of healthby the 110.25 commissioner of commerce. 110.26 Sec. 15. Minnesota Statutes 1998, section 62Q.01, 110.27 subdivision 2, is amended to read: 110.28 Subd. 2. [COMMISSIONER.] "Commissioner" means the 110.29 commissioner ofhealth for purposes of regulating health110.30maintenance organizations, and community integrated service110.31networks, or the commissioner ofcommercefor purposes of110.32regulating all other health plan companies. For all other110.33purposes, "commissioner" means the commissioner of health. 110.34 Sec. 16. Minnesota Statutes 1998, section 62Q.07, is 110.35 amended to read: 110.36 62Q.07 [ACTION PLANS.] 111.1 Subdivision 1. [ACTION PLANS REQUIRED.] (a) To increase 111.2 public awareness and accountability of health plan companies, 111.3 all health plan companies that issue or renew a health plan, as 111.4 defined in section 62Q.01, must annually file with the 111.5applicablecommissioner an action plan that satisfies the 111.6 requirements of this section beginning July 1, 1994, as a 111.7 condition of doing business in Minnesota. For purposes of this 111.8 subdivision, "health plan" includes the coverages described in 111.9 section 62A.011, subdivision 3, clause (10). Each health plan 111.10 company must also file its action plan with the information 111.11 clearinghouse. Action plans are required solely to provide 111.12 information to consumers, purchasers, and the larger community 111.13 as a first step toward greater accountability of health plan 111.14 companies. The sole function of the commissioner in relation to 111.15 the action plans is to ensure that each health plan company 111.16 files a complete action plan, that the action plan is truthful 111.17 and not misleading, and that the action plan is reviewed by 111.18 appropriate community agencies. 111.19 (b) Ifathe commissionerresponsible for regulating a111.20health plan company required to file an action plan under this111.21sectionhas reason to believe an action plan is false or 111.22 misleading, the commissioner may conduct an investigation to 111.23 determine whether the action plan is truthful and not 111.24 misleading, and may require the health plan company to submit 111.25 any information that the commissioner reasonably deems necessary 111.26 to complete the investigation. If the commissioner determines 111.27 that an action plan is false or misleading, the commissioner may 111.28 require the health plan company to file an amended plan or may 111.29 take any action authorized under chapter 72A. 111.30 Subd. 2. [CONTENTS OF ACTION PLANS.] (a) An action plan 111.31 must include a detailed description of all of the health plan 111.32 company's methods and procedures, standards, qualifications, 111.33 criteria, and credentialing requirements for designating the 111.34 providers who are eligible to participate in the health plan 111.35 company's provider network, including any limitations on the 111.36 numbers of providers to be included in the network. This 112.1 description must be updated by the health plan company and filed 112.2 with theapplicable agencycommissioner on a quarterly basis. 112.3 (b) An action plan must include the number of full-time 112.4 equivalent physicians, by specialty, nonphysician providers, and 112.5 allied health providers used to provide services. The action 112.6 plan must also describe how the health plan company intends to 112.7 encourage the use of nonphysician providers, midlevel 112.8 practitioners, and allied health professionals, through at least 112.9 consumer education, physician education, and referral and 112.10 advisement systems. The annual action plan must also include 112.11 data that is broken down by type of provider, reflecting actual 112.12 utilization of midlevel practitioners and allied professionals 112.13 by enrollees of the health plan company during the previous 112.14 year.Until July 1, 1995, a health plan company may use112.15estimates if actual data is not available.For purposes of this 112.16 paragraph, "provider" has the meaning given in section 62J.03, 112.17 subdivision 8. 112.18 (c) An action plan must include a description of the health 112.19 plan company's policy on determining the number and the type of 112.20 providers that are necessary to deliver cost-effective health 112.21 care to its enrollees. The action plan must also include the 112.22 health plan company's strategy, including provider recruitment 112.23 and retention activities, for ensuring that sufficient providers 112.24 are available to its enrollees. 112.25 (d) An action plan must include a description of actions 112.26 taken or planned by the health plan company to ensure that 112.27 information from report cards, outcome studies, and complaints 112.28 is used internally to improve quality of the services provided 112.29 by the health plan company. 112.30 (e) An action plan must include a detailed description of 112.31 the health plan company's policies and procedures for enrolling 112.32 and serving high risk and special needs populations. This 112.33 description must also include the barriers that are present for 112.34 the high risk and special needs population and how the health 112.35 plan company is addressing these barriers in order to provide 112.36 greater access to these populations. "High risk and special 113.1 needs populations" includes, but is not limited to, recipients 113.2 of medical assistance, general assistance medical care, and 113.3 MinnesotaCare; persons with chronic conditions or disabilities; 113.4 individuals within certain racial, cultural, and ethnic 113.5 communities; individuals and families with low income; 113.6 adolescents; the elderly; individuals with limited or no English 113.7 language proficiency; persons with high-cost preexisting 113.8 conditions; homeless persons; chemically dependent persons; 113.9 persons with serious and persistent mental illness; children 113.10 with severe emotional disturbance; and persons who are at high 113.11 risk of requiring treatment. For purposes of this paragraph, 113.12 "provider" has the meaning given in section 62J.03, subdivision 113.13 8. 113.14 (f) An action plan must include a general description of 113.15 any action the health plan company has taken and those it 113.16 intends to take to offer health coverage options to rural 113.17 communities and other communities not currently served by the 113.18 health plan company. 113.19 (g) A health plan company other than a large managed care 113.20 plan company may satisfy any of the requirements of the action 113.21 plan in paragraphs (a) to (f) by stating that it has no 113.22 policies, procedures, practices, or requirements, either written 113.23 or unwritten, or formal or informal, and has undertaken no 113.24 activities or plans on the issues required to be addressed in 113.25 the action plan, provided that the statement is truthful and not 113.26 misleading. For purposes of this paragraph, "large managed care 113.27 plan company" means a health maintenance organization or other 113.28 health plan company that employs or contracts with health care 113.29 providers, that has more than 50,000 enrollees in this state. 113.30 If a health plan company employs or contracts with providers for 113.31 some of its health plans and does not do so for other health 113.32 plans that it offers, the health plan company is a large managed 113.33 care plan company if it has more than 50,000 enrollees in this 113.34 state in health plans for which it does employ or contract with 113.35 providers. 113.36 Sec. 17. Minnesota Statutes 1998, section 62Q.075, 114.1 subdivision 4, is amended to read: 114.2 Subd. 4. [REVIEW.] Upon receipt of the plan, the 114.3appropriatecommissioner shall provide a copy to the regional 114.4 coordinating boards, local community health boards, and other 114.5 relevant community organizations within the managed care 114.6 organization's service area. After reviewing the plan, these 114.7 community groups may submit written comments on the plan to 114.8eitherthe commissioner ofhealth orcommerce, as applicable,114.9 and may advise the commissioner of the managed care 114.10 organization's effectiveness in assisting to achieve regional 114.11 public health goals. The plan may be reviewed by the county 114.12 boards, or city councils acting as a local board of health in 114.13 accordance with chapter 145A, within the managed care 114.14 organization's service area to determine whether the plan is 114.15 consistent with the goals and objectives of the plans required 114.16 under chapters 145A and 256E and whether the plan meets the 114.17 needs of the community. The county board, or applicable city 114.18 council, may also review and make recommendations on the 114.19 availability and accessibility of services provided by the 114.20 managed care organization. The county board, or applicable city 114.21 council, may submit written comments to theappropriate114.22 commissioner, and may advise the commissioner of the managed 114.23 care organization's effectiveness in assisting to meet the needs 114.24 and goals as defined under the responsibilities of chapters 145A 114.25 and 256E.The commissioner of health shall develop114.26recommendations to utilize the written comments submitted as114.27part of the licensure process to ensure local public114.28accountability. These recommendations shall be reported to the114.29legislative commission on health care access by January 15,114.301996.Copies of these written comments must be provided to the 114.31 managed care organization. The plan and any comments submitted 114.32 must be filed with the information clearinghouse to be 114.33 distributed to the public. 114.34 Sec. 18. Minnesota Statutes 1998, section 62Q.105, 114.35 subdivision 6, is amended to read: 114.36 Subd. 6. [RECORDKEEPING.] Health plan companies shall 115.1 maintain records of all enrollee complaints and their 115.2 resolutions. These records must be retained for five years, and 115.3 must be made available to theappropriatecommissioner upon 115.4 request. 115.5 Sec. 19. Minnesota Statutes 1998, section 62Q.105, 115.6 subdivision 7, is amended to read: 115.7 Subd. 7. [REPORTING.] Each health plan company shall 115.8 submit to theappropriatecommissioner, as part of the company's 115.9 annual filing, data on the number and type of complaints that 115.10 are not resolved within 30 days. A health plan company shall 115.11 also make this information available to the public upon request. 115.12 Sec. 20. Minnesota Statutes 1998, section 62Q.11, is 115.13 amended to read: 115.14 62Q.11 [DISPUTE RESOLUTION.] 115.15 Subdivision 1. [ESTABLISHED.] Thecommissioners of health115.16and commercecommissioner shall make dispute resolution 115.17 processes available to encourage early settlement of disputes in 115.18 order to avoid the time and cost associated with litigation and 115.19 other formal adversarial hearings. For purposes of this 115.20 section, "dispute resolution" means the use of negotiation, 115.21 mediation, arbitration, mediation-arbitration, neutral fact 115.22 finding, and minitrials. These processes shall be nonbinding 115.23 unless otherwise agreed to by all parties to the dispute. 115.24 Subd. 2. [REQUIREMENTS.] (a) If an enrollee, health care 115.25 provider, or applicant for network provider status chooses to 115.26 use a dispute resolution process prior to the filing of a formal 115.27 claim or of a lawsuit, the health plan company must participate. 115.28 (b) If an enrollee, health care provider, or applicant for 115.29 network provider status chooses to use a dispute resolution 115.30 process after the filing of a lawsuit, the health plan company 115.31 must participate in dispute resolution, including, but not 115.32 limited to, alternative dispute resolution under rule 114 of the 115.33 Minnesota general rules of practice. 115.34 (c) Thecommissioners of health and commercecommissioner 115.35 shall inform and educate health plan companies' enrollees about 115.36 dispute resolution and its benefits, and shall establish 116.1 appropriate cost-sharing requirements for parties taking part in 116.2 alternative dispute resolution. 116.3 (d) A health plan company may encourage but not require an 116.4 enrollee to submit a complaint to alternative dispute resolution. 116.5 Sec. 21. Minnesota Statutes 1998, section 62Q.22, 116.6 subdivision 2, is amended to read: 116.7 Subd. 2. [REGISTRATION.] A community health clinic that 116.8 offers a prepaid option under this section must register on an 116.9 annual basis with the commissionerof health. 116.10 Sec. 22. Minnesota Statutes 1998, section 62Q.22, 116.11 subdivision 6, is amended to read: 116.12 Subd. 6. [INFORMATION TO BE PROVIDED.] (a) A community 116.13 health clinic must provide an individual or family who purchases 116.14 a prepaid option a clear and concise written statement that 116.15 includes the following information: 116.16 (1) the health care services that the prepaid option 116.17 covers; 116.18 (2) any exclusions or limitations on the health care 116.19 services offered, including any preexisting condition 116.20 limitations, cost-sharing arrangements, or prior authorization 116.21 requirements; 116.22 (3) where the health care services may be obtained; 116.23 (4) a description of the clinic's method for resolving 116.24 patient complaints, including a description of how a patient can 116.25 file a complaint with the department ofhealthcommerce; and 116.26 (5) a description of the conditions under which the prepaid 116.27 option may be canceled or terminated. 116.28 (b) The commissionerof healthmust approve a copy of the 116.29 written statement before the community health clinic may offer 116.30 the prepaid option described in this section. 116.31 Sec. 23. Minnesota Statutes 1998, section 62Q.22, 116.32 subdivision 7, is amended to read: 116.33 Subd. 7. [COMPLAINT PROCESS.] (a) A community health 116.34 clinic that offers a prepaid option under this section must 116.35 establish a complaint resolution process. As an alternative to 116.36 establishing its own process, a community health clinic may use 117.1 the complaint process of another organization. 117.2 (b) A community health clinic must make reasonable efforts 117.3 to resolve complaints and to inform complainants in writing of 117.4 the clinic's decision within 60 days of receiving the complaint. 117.5 (c) A community health clinic that offers a prepaid option 117.6 under this section must report all complaints that are not 117.7 resolved within 60 days to the commissionerof health. 117.8 Sec. 24. Minnesota Statutes 1998, section 62Q.32, is 117.9 amended to read: 117.10 62Q.32 [LOCAL OMBUDSPERSON.] 117.11 County board or community health service agencies may 117.12 establish an office of ombudsperson to provide a system of 117.13 consumer advocacy for persons receiving health care services 117.14 through a health plan company. The ombudsperson's functions may 117.15 include, but are not limited to: 117.16 (a) mediation or advocacy on behalf of a person accessing 117.17 the complaint and appeal procedures to ensure that necessary 117.18 medical services are provided by the health plan company; and 117.19 (b) investigation of the quality of services provided to a 117.20 person and determine the extent to which quality assurance 117.21 mechanisms are needed or any other system change may be needed. 117.22The commissioner of health shall make recommendations for117.23funding these functions including the amount of funding needed117.24and a plan for distribution. The commissioner shall submit117.25these recommendations to the legislative commission on health117.26care access by January 15, 1996.117.27 Sec. 25. Minnesota Statutes 1998, section 62Q.51, 117.28 subdivision 3, is amended to read: 117.29 Subd. 3. [RATE APPROVAL.] The premium rates and cost 117.30 sharing requirements for each option must be submitted to the 117.31 commissionerof health or the commissioner of commerceas 117.32 required by law. A health plan that includes lower enrollee 117.33 cost sharing for services provided by network providers than for 117.34 services provided by out-of-network providers, or lower enrollee 117.35 cost sharing for services provided with prior authorization or 117.36 second opinion than for services provided without prior 118.1 authorization or second opinion, qualifies as a point-of-service 118.2 option. 118.3 Sec. 26. Minnesota Statutes 1998, section 62Q.525, 118.4 subdivision 3, is amended to read: 118.5 Subd. 3. [REQUIRED COVERAGE.] (a) Every type of coverage 118.6 included in subdivision 1 that provides coverage for drugs may 118.7 not exclude coverage of a drug for the treatment of cancer on 118.8 the ground that the drug has not been approved by the federal 118.9 Food and Drug Administration for the treatment of cancer if the 118.10 drug is recognized for treatment of cancer in one of the 118.11 standard reference compendia or in one article in the medical 118.12 literature, as defined in subdivision 2. 118.13 (b) Coverage of a drug required by this subdivision 118.14 includes coverage of medically necessary services directly 118.15 related to and required for appropriate administration of the 118.16 drug. 118.17 (c) Coverage required by this subdivision does not include 118.18 coverage of a drug not listed on the formulary of the coverage 118.19 included in subdivision 1. 118.20 (d) Coverage of a drug required under this subdivision must 118.21 not be subject to any copayment, coinsurance, deductible, or 118.22 other enrollee cost-sharing greater than the coverage included 118.23 in subdivision 1 applies to other drugs. 118.24 (e) The commissionerof commerce or health, as appropriate,118.25 may direct a person that issues coverage included in subdivision 118.26 1 to make payments required by this section. 118.27 Sec. 27. Minnesota Statutes 1998, section 72A.139, 118.28 subdivision 2, is amended to read: 118.29 Subd. 2. [DEFINITIONS.] (a) As used in this section, 118.30 "commissioner" means the commissioner of commercefor health118.31plan companies and other insurers regulated by that commissioner118.32and the commissioner of health for health plan companies118.33regulated by that commissioner. 118.34 (b) As used in this section, a "genetic test" means a 118.35 presymptomatic test of a person's genes, gene products, or 118.36 chromosomes for the purpose of determining the presence or 119.1 absence of a gene or genes that exhibit abnormalities, defects, 119.2 or deficiencies, including carrier status, that are known to be 119.3 the cause of a disease or disorder, or are determined to be 119.4 associated with a statistically increased risk of development of 119.5 a disease or disorder. "Genetic test" does not include a 119.6 cholesterol test or other test not conducted for the purpose of 119.7 determining the presence or absence of a person's gene or genes. 119.8 (c) As used in this section, "health plan" has the meaning 119.9 given in section 62Q.01, subdivision 3. 119.10 (d) As used in this section, "health plan company" has the 119.11 meaning given in section 62Q.01, subdivision 4. 119.12 (e) As used in this section, "individual" means an 119.13 applicant for coverage or a person already covered by the health 119.14 plan company or other insurer. 119.15 Sec. 28. [REPEALER.] 119.16 Minnesota Statutes 1998, sections 62L.11, subdivision 2; 119.17 and 62Q.45, subdivision 1, are repealed. 119.18 Sec. 29. [EFFECTIVE DATE.] 119.19 This article is effective July 1, 2000.